CFTC approves Kalshi Bitcoin perpetual futures, signals support for 24/7 crypto derivatives trading

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CFTC approves Kalshi Bitcoin futures

Highlights

On Friday, the CFTC approved Kalshi's perpetual futures contracts tied to Bitcoin's spot price, enabling users to speculate without owning underlying assets.
The CFTC distinguishes crypto derivatives as well-suited for 24/7 trading and CME Group announces plans for continuous crypto futures trading pending regulatory review.
Ongoing leadership gaps at the CFTC persist as Michael Selig remains sole commissioner, with President Donald Trump yet to nominate additional members.

Regulatory stance on perpetual contracts

As reported by the U.S. Commodity Futures Trading Commission, the agency on Friday approved perpetual futures contracts tied to the spot price of Bitcoin for prediction markets platform Kalshi. Kalshi says at roughly the same time that it is launching the contracts on its platform, marking a step closer to operating as a derivatives exchange.

The CFTC says its order is based on Kalshi's representations and submissions supporting the request for approval, including its analysis of the BTCPERP contract's terms, the underlying commodity market, and compliance with the Commodity Exchange Act and related regulations. The perpetual futures products allow Coinbase and Kalshi users to speculate on crypto prices without holding the underlying assets.

The agency's no-action position for Coinbase and its approval for Kalshi indicate a more receptive posture toward crypto derivatives in the U.S. Coinbase chief legal officer Paul Grewal describes the decision as a major first for the industry in a Friday post on X, while the exchange had already launched stock perpetual futures for non-U.S. traders in March.

24/7 trading implications and policy backdrop

In a separate notice, the CFTC draws a distinction between the suitability of traditional markets and crypto markets for continuous trading. The agency says derivatives referencing crypto assets may be well suited to 24/7 trading because of their digital infrastructure and global reach, while agricultural markets and some other products may be less suited because of their customer base, regional characteristics, and other factors.

CME Group also announces plans for 24/7 crypto futures trading, subject to regulatory review, underscoring broader momentum behind always-open digital asset markets. The shift could strengthen the competitive position of U.S. crypto derivatives venues if regulators continue to accommodate market structures built around uninterrupted trading and settlement.

The regulatory debate is unfolding alongside a leadership vacuum at the commission. President Donald Trump says this week that he supports Michael Selig and the CFTC in their fight for jurisdiction over prediction markets, as state-level lawsuits seek to restrict or ban such platforms, while Selig maintains that the agency has exclusive jurisdiction under the Commodity Exchange Act.

Selig remains the chair and sole commissioner at the federal commodities regulator, even though the panel is intended to have five bipartisan members. As of Friday, Trump has not announced nominations to fill the remaining seats.

Our earlier article on Coinbase and Kalshi’s regulated perpetual crypto futures in the U.S. explained how CFTC approvals are bringing “perps” into an onshore, regulated framework while highlighting the higher leverage and risk these contracts can carry for retail traders. We also noted that the regulator signaled tighter oversight via case-by-case reviews for new perpetual contracts, underscoring the scrutiny around how these products are listed and monitored on U.S. venues.

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