CFTC Approves First Regulated Bitcoin Perpetual Futures

U.S. regulators have opened a new pathway for domestic cryptocurrency trading by approving the first regulated Bitcoin perpetual futures contract. The Commodity Futures Trading Commission granted approval to the exchange KalshiEX to list its BTCPERP contract, a derivative product that allows traders to speculate on Bitcoin's price without a set expiration date.

The decision, announced on Friday, marks a significant shift for a financial instrument that has been overwhelmingly traded on offshore platforms. CFTC Chairman Michael Selig described the action as historic, stating it charts a path for one of the most liquid segments of the crypto asset markets to exist within the U.S. regulatory framework. The approval requires Kalshi to maintain compliance with all applicable provisions of the Commodity Exchange Act.

Perpetual futures, commonly called "perps," are a dominant form of crypto derivatives globally. Unlike traditional futures, they do not expire and use a funding-rate mechanism to keep their price aligned with the underlying spot market. They are popular for allowing significant leverage, which can amplify both gains and losses. Chairman Selig noted the agency's approach...