CFTC Approves First Regulated Bitcoin Perps on Kalshi

The U.S. Commodity Futures Trading Commission has approved bitcoin perpetual futures contracts on a regulated exchange run by Kalshi, marking the first for U.S. perps. CFTC Chairman Mike Selig approved the first regulated bitcoin perpetual futures contracts in the U.S. The derivatives regulator has now set a standard for firms to approach such contracts, which Selig called a "major step forward" in adopting policies to boost the U.S. crypto space.

U.S. crypto firms can offer perpetual futures contracts, or "perps," without running afoul of the CFTC, according to the agency's first approval allowing Kalshi to list and trade bitcoin perpetuals. The perp is a kind of derivative that allows the investor to speculate on future price movements in a crypto asset without putting an expiration date on that contract, allowing it to be held as long as the investor wants. With this first approval on a registered platform, the CFTC opens a U.S. path for the potentially lucrative arena of crypto perps that have previously been pursued more in non-U.S. jurisdictions.

The CFTC announced Kalshi is approved for the first true bitcoin-referenced perp, BTCPERP. The approval requires that Kalshi list and maintain the BTCPERP Contract in compliance with all applicable provisions of the Commodity Exchange Act. While Kalshi is best known as a leading prediction markets platform, the registered exchange has been expanding its business footprint.

"This marks Kalshi’s evolution from prediction market leader to next-gen derivatives exchange," said Tarek Mansour, CEO of Kalshi. He added that "Onshore, safe and regulated perps will improve capital allocation and risk management for countless American businesses."

In a no-action letter sent to Coinbase on the same day, the CFTC said it would not recommend an enforcement action for certain perpetual futures products that Coinbase intends to list through its CFM subsidiary. These perpetual futures will be routed through Coinbase Bermuda, so they'll be treated as "foreign futures." The no-action letter will allow CFM to post customers' digital assets (including bitcoin, ether and stablecoins) as margin collateral for these products.

The CFTC announcements follow closely on the heels of President Donald Trump’s social-media post this week that cited perpetuals and argued that the previous administration's regulators "nearly DESTROYED the American Crypto Industry by driving Bitcoin, Crypto Perpetuals, and INNOVATION offshore, but 'TRUMP' SAVED IT." Trump's CFTC chairman, Mike Selig, argued that the contracts represent "a foundational risk management and price discovery tool in the global crypto asset markets."

"Having true perpetual contracts in the United States is a major step forward in delivering on President Trump’s goal of cementing America as the crypto capital of the world," Selig wrote in an opinion piece published Friday at CoinDesk. He said his agency is now providing "a workable framework for true crypto asset perpetual contracts."