CFTC Approves First US Bitcoin Perpetual Futures

The Commodity Futures Trading Commission (CFTC) has approved the first Bitcoin perpetual futures contract to trade on a U.S.-regulated exchange, marking a significant shift in the regulatory landscape for crypto derivatives [1]. The agency granted approval to KalshiEX for its BTCPERP contract on May 29, while simultaneously issuing a no-action letter to a Coinbase subsidiary to connect U.S. customers to offshore perpetual markets [1][2].

Key takeaways

• The CFTC approved KalshiEX’s BTCPERP on May 29, marking the first Bitcoin perpetual futures contract on a U.S.-regulated exchange [1][2].
• Coinbase received a no-action letter allowing its derivatives subsidiary to route U.S. customers to offshore perpetuals using crypto as collateral [1][2].
• Bitcoin perpetuals are the most traded crypto derivative globally, with daily volumes exceeding $50 billion on platforms like Binance and Bybit [2].
• Market reaction included a surge in Hyperliquid’s HYPE token to an all-time high, while broader crypto majors fell 6% on the week [1].

Distinct Regulatory Pathways for Kalshi and Coinbase

The CFTC has established separate regulatory pathways for crypto perpetuals, distinguishing between domestic listings and offshore products [1]. Kalshi received a formal Order for Approval under Section 5c(c)(4) of the Commodity Exchange Act for a cash-settled contract that trades 24/7 and utilizes a funding mechanism tied to spot prices [1][2]. The exchange has opened a waitlist and expects to launch within a month [2].

Coinbase’s approval differs significantly; the no-action letter allows its Coinbase Financial Markets subsidiary to route perpetual futures through Coinbase Bermuda, treating them as foreign futures products [1][2]. This permits U.S. customers to access these offshore products using Bitcoin, Ethereum, and stablecoins as margin collateral, effectively creating a regulated bridge to global markets rather than a domestic listing [1][2].

Market Reaction and Offshore Competition

CFTC Chairman Michael Selig described the approval as a "historic action" that charts a path for one of the most liquid segments of the crypto asset markets to exist within the U.S. regulatory framework [1][2]. Markets reacted immediately, with Coinbase shares gaining 4% and Robinhood jumping 11% following the news [1]. Conversely, major cryptocurrencies like Bitcoin and Ethereum fell 6% on the week, while the token associated with decentralized exchange Hyperliquid (HYPE) surged over 30% to a new all-time high [1].

There is debate regarding the impact on Hyperliquid, as the approval opens the door to direct competition from U.S.-regulated entities [1]. However, the offshore market remains massive