CFTC Approves Bitcoin Perpetuals, Backs 24/7 Crypto Trading

The Commodity Futures Trading Commission approved Kalshi’s Bitcoin perpetual futures contract known as BTCPERP and issued a no-action position for Coinbase in notices published Friday. The agency also issued guidance saying derivatives tied to crypto assets may be suitable for continuous trading.

The CFTC said its order for Kalshi was based on the company’s filings and analysis of the contract’s terms, the nature of the underlying market and Kalshi’s representations about compliance with the Commodity Exchange Act and core principles for designated contract markets. Kalshi announced it will list BTCPERP on its platform. Perpetual futures, or perps, let traders speculate on a crypto price without owning the underlying asset and typically use funding payments to align contract prices with the spot market.

The agency’s no-action position for Coinbase permits the exchange to offer similar perpetual products without enforcement while legal and regulatory questions are resolved. Coinbase launched stock perpetual futures for non-U.S. customers in March. Coinbase chief legal officer Paul Grewal described the CFTC action as a “massive first for the industry” on social media.

In an advisory, the CFTC differentiated markets that may be suitable for nonstop trading from those that may not. The agency wrote that “derivatives referencing crypto assets may be well-suited for 24/7 trading due to their digital infrastructure and global reach,” and noted that traditional commodity markets such as agriculture may not be appropriate for continuous hours because of regional customer bases and other factors.

CME Group has announced plans to offer 24/7 crypto futures, subject to regulatory review.

Michael Selig is serving as the CFTC chair and sole commissioner. Selig has asserted the agency’s jurisdiction over prediction markets and has said the CFTC has exclusive authority under the Commodity Exchange Act. President Donald Trump posted public support for Selig this week; the White House has not named nominees to fill the other commission seats. State lawsuits seeking limits or bans on prediction markets are pending in several jurisdictions.

Market participants will monitor how exchanges implement perpetual contracts, how continuous trading is supervised, and how the agency applies rules as firms list new crypto derivatives products.