The US Commodity Futures Trading Commission opened a new chapter for American crypto markets on Friday by approving Kalshi to list and trade the first regulated Bitcoin perpetual futures contract, while simultaneously issuing guidance that allows Coinbase to route US clients into global crypto derivatives markets for the first time.
The twin actions mark a decisive shift in how the US derivatives regulator treats the perpetual futures market, a $90 trillion annual trading arena that has historically operated almost entirely offshore. Regulated US firms can now offer these instruments without running afoul of the Commodity Exchange Act, according to the CFTC”’s order.
## Kalshi Wins First BTCPERP Approval
The CFTC formally approved Kalshi”’s application for BTCPERP, a Bitcoin-referenced perpetual futures contract. The regulator said the approval “requires, among other terms and conditions, that Kalshi list and maintain the BTCPERP Contract in compliance with all applicable provisions of the Commodity Exchange Act.”
Kalshi CEO Tarek Mansour framed the approval as a natural evolution for the prediction markets platform. “This marks Kalshi”’s evolution from prediction market leader to next-gen derivatives exchange,” Mansour said. “Onshore, safe and regulated perps will improve capital allocation and risk management for countless American businesses.”
A Kalshi spokesperson told Decrypt the company aims to launch within the next month, though no specific date was given.
The approval comes roughly five months after the CFTC under former chair Caroline Pham gave a green light to Bitnomial for similar products, though that contract carried a 25-year limit, making it technically finite. Kalshi”’s BTCPERP has no expiration, matching the structure that has made perpetual futures the dominant derivatives product in global crypto markets.
## Coinbase Gets No-Action Relief for US Client Access
In a separate letter sent the same day, the CFTC granted Coinbase Financial Markets a no-action position allowing it to route certain perpetual futures products through Coinbase Bermuda, effectively treating them as foreign futures. This allows Coinbase to offer crypto derivatives to US clients that include Bitcoin, Ether, and stablecoins as margin collateral.
Coinbase Chief Legal Officer Paul Grewal called the development “a massive first for the industry” in a post on X, noting the significance of US investors gaining regulated access to the world”’s most actively traded crypto instruments.
Perpetual futures differ from traditional futures in that they have no expiration date, allowing traders to hold positions indefinitely. This design, combined with a funding rate mechanism that keeps contract prices aligned with spot markets, has made perps the preferred trading instrument for crypto traders worldwide.
The CFTC”’s approach drew a distinction between crypto perpetuals and traditional markets when it comes to round-the-clock trading. In a related advisory, the agency noted that while 24/7 trading suits crypto markets, it may not be appropriate for other sectors.
## Implications for US Crypto Markets
The twin approvals effectively end the era when US crypto traders had to use offshore exchanges or complex workarounds to access perpetual futures. Industry observers noted that the move could bring significant volume back onshore and improve market transparency.
CFTC Chairman Selig has signaled that additional perp-related approvals are likely in the coming weeks, with the agency seeking to establish a comprehensive framework for the asset class under existing commodities law.
The decision also intensifies competition in the prediction markets space, where Kalshi now positions itself as a next-generation derivatives exchange competing directly with Polymarket and traditional futures venues.
President Donald Trump cited perpetuals in a Truth Social post earlier this week, arguing that the previous administration had failed to establish clear rules for the products. The CFTC actions appear to address that regulatory vacuum.
## FAQ
**What are perpetual futures?**
Perpetual futures are derivative contracts that let traders speculate on an asset”’s price without an expiration date. They use a funding rate mechanism to keep contract prices close to the spot price and are the most traded crypto derivative globally.
**Can US retail investors now trade crypto perps?**
Yes, through CFTC-regulated platforms. Kalshi will offer Bitcoin perps directly to US users. Coinbase can route US clients through its Bermuda subsidiary under the CFTC”’s no-action guidance, using digital assets as margin collateral.
**Does this replace offshore perp trading?**
Not immediately. Offshore venues like Hyperliquid and Binance still dominate by volume. However, regulated onshore alternatives give US traders a compliant option and may reduce liquidity fragmentation as the market matures.
*Sources: CFTC Press Release 9240-26, CoinDesk, Reuters, Decrypt, Coinbase blog, Kalshi announcement*
