CFTC Approves First Regulated Bitcoin Perpetual Futures

The U.S. Commodity Futures Trading Commission (CFTC) is clarifying its stance on perpetual futures, a popular crypto derivative, as part of a broader shift to accommodate these instruments within regulated domestic markets. In recent public remarks, CFTC Chairman Michael Selig defended the agency's decision to greenlight the first regulated Bitcoin perpetual futures contract in the United States.

This approval was granted to prediction market platform Kalshi for its BTCPERP contract, which launched in a public beta test in late May following the formal regulatory decision. Kalshi has since expanded its offerings to include other cryptocurrencies. Early demand appears strong, with the company reporting over $3 billion in notional trading volume within roughly the first week of beta availability.

Perpetual futures, or "perps," are contracts that do not have an expiration date and are widely traded on unregulated offshore exchanges. Chairman Selig argued that the CFTC's move to approve them domestically is a pragmatic response to existing demand, aiming to bring trading activity under U.S. oversight rather than ceding it entirely to foreign venues. He dismissed criticism from...