Access to crypto derivatives in the United States has been heavily restricted for years. A large part of global trading activity moved overseas, while U.S. investors were forced to turn to offshore platforms for these products. That picture is now changing.
The Commodity Futures Trading Commission (CFTC) has cleared the way for perpetual futures contracts, widely known as “perps,” to be offered domestically. Under the Commission’s latest move, Kalshi and Coinbase will be able to offer these products to users in the United States.
What are perpetual futures contracts, and why do they matter?
Perpetual futures contracts are derivative instruments that allow investors to take positions based on an asset’s price movement without directly buying the asset itself. Their difference from standard futures contracts is simple: they do not have an expiration date. A position can remain open until the investor decides to close it.
This feature has made perps one of the most liquid and widely used products in the crypto derivatives market. However, the vast majority of these trades have taken place on offshore exchanges for years. U.S. users could not access this market.
Coinbase CEO Brian Armstrong put the scale of the issue clearly. Until now, U.S. users had no access to roughly 80 percent of the global crypto market. Perpetual futures and options made up a significant part of that 80 percent. Armstrong said, “That is now changing.”
What did the CFTC do?
The Commission’s Division of Clearing and Risk, Division of Market Oversight and Market Participants Division issued a joint staff advisory on Friday. This advisory is not a formal rulemaking, meaning it does not carry permanent legal status. However, it clearly states that CFTC-registered exchanges may list perpetual futures contracts.
In the advisory, Commission staff emphasized that demand for 24/7 trading has increased due to the impact of blockchain technology and decentralized infrastructure. In this environment, the staff’s aim is to explain the risks linked to continuous trading and how existing regulations address those risks. In a sense, the document offers a roadmap to the market.
CFTC Chair Brian Quintenz described the decision on X as a historic step. “Today, the CFTC took a historic step enabling a bitcoin perpetual contract to be listed by a CFTC-registered exchange. This decision opens the door for one of the most liquid crypto asset markets to operate within the U.S. regulatory framework,” he said.
Green light for Kalshi and Coinbase
The CFTC authorized KalshiEX LLC to list BTCPERP, a perpetual contract linked to the price of Bitcoin. For Coinbase Financial Markets Inc., the Commission adopted a “no-action” position regarding the company’s plan to offer digital commodity derivatives products.
Coinbase’s reaction to the development was openly enthusiastic. Armstrong described it as “a big day for U.S. traders and Coinbase.”
What does it mean for the market?
The perps market has long been the center of gravity for crypto derivatives. In terms of daily trading volume, it has frequently surpassed the spot market. Most of this volume has flowed through offshore exchanges such as Binance, Bybit and OKX. U.S. users either accessed these platforms through VPNs or missed out on this market entirely.
The CFTC’s move creates an opportunity for domestic exchanges operating within a regulated framework to bring this liquidity onto their own platforms. Still, it is important to remember that the decision is advisory in nature and does not represent a formal regulatory change. A new administration or a step at the congressional level could change the picture again. For now, however, the CFTC’s message is clear: the U.S. wants to play a larger role in the crypto derivatives market.
