CFTC Approves Perpetual Futures Contracts, Opens Door to Crypto Derivatives

The US Commodity Futures Trading Commission (CFTC) has taken a significant step forward in regulating cryptocurrency derivatives. In a recent notice, the agency approved perpetual futures contracts tied to Bitcoin's spot price for prediction markets platform Kalshi.

Kalshi plans to launch these products on its platform, allowing users to speculate on crypto prices without owning the underlying assets. This move is seen as a step towards more open regulation of cryptocurrency derivatives, as it gives platforms like Coinbase and Kalshi the green light to offer these products.

The CFTC's approval is based on representations made by Kalshi, including its analysis of the contract's terms and conditions. The agency has also issued an advisory on 24/7 trading in traditional and crypto markets, distinguishing between the suitability of each for around-the-clock trading.