The U.S. Commodity Futures Trading Commission (CFTC) has approved the country’s inaugural bitcoin perpetual futures contract on a regulated exchange, signifying a pivotal advancement in the landscape of domestic cryptocurrency derivatives trading.
Summary
- CFTC grants approval for the first bitcoin perpetual futures contract in the U.S.
- Chairman Mike Selig states this development supports President Trump’s vision of making America the “crypto capital of the world”
- Perpetual futures previously dominated offshore markets, capturing over 70% of centralized trading activity
On Friday, the CFTC revealed that it had sanctioned an unnamed regulated exchange to trade bitcoin perpetual futures contracts, breaking the offshore stranglehold on these high-demand derivatives. This approval follows CFTC leadership signaling a strong intent to bring crypto perpetuals onshore, which enable traders to speculate on Bitcoin (BTC) price fluctuations without any expiration dates.
Chairman Mike Selig emphasized in a recent opinion piece on CoinDesk that “the introduction of genuine perpetual contracts in the United States is a significant advancement towards fulfilling President Trump’s ambition of establishing America as the global leader in crypto.” He described these contracts as “essential tools for risk management and price discovery within the worldwide crypto asset markets.”
Regulatory Changes Under Trump’s Administration
This announcement coincides with President Donald Trump’s recent social media comments, where he claimed that the previous administration “almost DESTROYED the American Crypto Industry by driving Bitcoin, Crypto Perpetuals, and INNOVATION offshore, but ‘TRUMP’ SAVED IT.” Selig reiterated this viewpoint in March, indicating his intention to rectify the harm that led many firms and liquidity to move away from the U.S.
Unlike traditional futures, perpetual futures contracts do not have an expiration date, enabling positions to stay open indefinitely via a funding rate mechanism that ensures price alignment with spot rates. These contracts have made up more than 70% of centralized exchange volume in the offshore crypto trading space since 2016. In 2025, the trading volume for perpetual futures reached $61.7 trillion, a 29% increase from the previous year.
Kalshi and Polymarket Compete for Market Share
While the CFTC did not specify the exchange that received the approval, prediction market platform Kalshi had previously disclosed intentions to launch cryptocurrency perpetual futures in April. Co-founder Luana Lopes Lara expressed enthusiasm for the regulatory advancements since December 2024. Kalshi has acquired a CFTC margin trading license and planned a launch event in New York City for its perpetual futures product, internally dubbed “Timeless” on April 27.
This platform seeks to offer at least 10x leverage on Bitcoin and other assets, starting with U.S. dollar collateral and planning to introduce Bitcoin trading later. Competitor Polymarket also entered the perpetual futures arena in April, heightening the competition in this lucrative derivatives market.
Selig noted that the CFTC’s strategy would “curtail excessive leverage, volatility, and systemic risks.” This announcement serves as agency guidance rather than formal regulations, which means that subsequent leaders of the CFTC might alter these policies without requiring congressional approval. This shift is in line with broader regulatory changes from the CFTC during Trump’s administration, including enhanced coordination with the SEC on cryptocurrency asset categorization and expanded frameworks for tokenized collateral.