The Commodity Futures Trading Commission has officially granted regulatory approval allowing US investors to trade perpetual cryptocurrency futures on domestic exchanges. The decision addresses a long-standing regulatory gap that drove a $61.7 trillion perpetual derivatives market in 2025 almost entirely onto offshore platforms.
Prediction market Kalshi immediately secured approval to list its BTCPERP contract, a bitcoin-linked derivative operating without a traditional expiration date. Simultaneously, Coinbase Financial Markets received a no-action determination from the CFTC, clearing a path for the exchange to route domestic users into regulated digital commodity markets.
CFTC Chair Michael Selig characterized the approval as a “historic action,” stating it aligns with President Trump’s broader agenda to consolidate cryptocurrency trading volume within the United States. To manage the rollout, the agency issued a staff advisory detailing strict oversight parameters for 24/7 trading, nonstop settlement, and clearing operations, according to official guidance reported by The Block.
Coinbase CEO Brian Armstrong posted on X that American traders were previously “locked out of ~80% of global crypto markets.” Kalshi CEO Tarek Mansour stated the onshore framework will improve capital allocation and risk management for US-based entities. Moving forward, the CFTC instituted a new policy requiring a case-by-case review process for any future perpetual contracts tied to non-crypto asset categories.
How Onshore Perpetuals Restructure US Crypto Liquidity
Perpetual contracts allow traders to maintain open positions indefinitely, often utilizing margin borrowing ratios up to 50-to-1. Historically, US regulators restricted these instruments due to liquidation risks, forcing domestic capital onto foreign platforms. By authorizing onshore trading, the CFTC shifts billions in daily derivatives volume back into the US financial system, enforcing strict compliance with the Commodity Exchange Act.
The approval also signals a structural pivot for Kalshi. Originally operating as an event-based prediction market, the platform is now positioning itself as a primary derivatives exchange. By successfully clearing BTCPERP, Kalshi and Coinbase bypass traditional institutional bottlenecks, establishing a direct legal pipeline for domestic retail and institutional capital to access continuous cryptocurrency markets.