CFTC Clears Path for Regulated Crypto Perpetual Futures in US Market

The Commodity Futures Trading Commission (CFTC) has taken a major step towards regulating the US crypto derivatives market by approving Kalshi and Coinbase to offer regulated crypto perpetual futures.

Kalshi, a prediction market platform, has been granted approval to list a bitcoin-referenced perpetual futures contract, known as BTCPERP. This contract will allow traders to take positions on asset prices without owning the underlying asset directly.

Coinbase Financial Markets, an affiliate of Coinbase, has also received a no-action position for digital commodity derivatives products. This move allows Coinbase to connect US customers with certain global options and perpetual futures, which will be routed through its Bermuda-based entity.

The CFTC's approval marks a significant shift in the US crypto derivatives market, bringing a market that was previously dominated offshore into the US regulatory framework. The agency has issued guidance on 24/7 trading, clearing, and settlement, but it is unclear what long-term implications this may have for the industry.