The U.S. Commodity Futures Trading Commission has approved Kalshi to launch the first federally regulated Bitcoin perpetual futures contract in the United States, opening a new path for crypto derivatives trading onshore.
Summary
- The CFTC approved Kalshi’s BTCPERP contract, clearing the way for the first federally regulated Bitcoin perpetual futures product in the U.S.
- The regulator also issued Coinbase a no-action letter allowing certain crypto perpetual futures products to use Bitcoin, Ether, and stablecoins as collateral.
- Kalshi’s approval comes as the company expands beyond prediction markets while challenging Minnesota’s proposed prediction market ban in federal court.
According to a CFTC announcement released Friday, Kalshi received approval to list and trade a Bitcoin-referenced perpetual futures contract under the ticker BTCPERP. The regulator said the approval requires the exchange to maintain the product in compliance with the Commodity Exchange Act and other applicable regulations.
The decision gives U.S. traders access to a type of crypto derivative that has largely been offered through offshore venues.
Unlike traditional futures contracts, perpetual futures do not expire, allowing traders to keep positions open indefinitely while speculating on the future price of an asset.
Kalshi chief executive Tarek Mansour said in a statement published on the company’s website that the launch represents the firm’s next step beyond prediction markets and into regulated derivatives trading. Mansour said federally regulated perpetual futures could improve risk management and capital allocation for U.S. businesses.
The approval comes as Kalshi continues to expand its role in financial markets while facing multiple regulatory and political battles linked to prediction markets.
The approval opens a regulated U.S. market for Bitcoin perpetual futures
For years, perpetual futures have become one of the most heavily traded products in global crypto markets, particularly on exchanges operating outside the United States. Their popularity stems from the ability to gain leveraged exposure to Bitcoin and other digital assets without dealing with contract expiration dates.
Alongside Kalshi’s approval, the CFTC issued a no-action letter to Coinbase on Friday covering certain perpetual futures products the exchange plans to offer through its Coinbase Financial Markets subsidiary.
According to the regulator, those contracts will be routed through Coinbase Bermuda and treated as foreign futures products. The no-action relief allows Coinbase Financial Markets to accept digital assets, including Bitcoin, Ether, and stablecoins, as margin collateral for eligible customers.
The CFTC’s twin announcements arrived days after President Donald Trump highlighted crypto perpetuals in a May 28 Truth Social post. Trump argued that previous regulators had pushed Bitcoin, crypto perpetuals, and innovation offshore before his administration reversed that trend.
“Gary Gensler and the “Anti-Crypto Army” nearly DESTROYED the American Crypto Industry by driving Bitcoin, Crypto Perpetuals, and INNOVATION offshore, but “TRUMP” SAVED IT.”
While perpetual futures can offer traders substantial gains from relatively small market moves, industry participants have long noted that leverage can also amplify losses during periods of volatility.
Kalshi expands beyond prediction markets amid regulatory disputes
The Bitcoin perpetuals approval lands during a period of rapid growth and heightened scrutiny for Kalshi’s business.
Earlier this month, the company filed a federal lawsuit against Minnesota seeking to block a state law that would prohibit prediction market platforms from operating in the state beginning Aug. 1.
Kalshi argued in its complaint that the Commodity Exchange Act grants the CFTC exclusive jurisdiction over event contracts and that Minnesota’s law improperly interferes with federally regulated exchanges.
The legal challenge followed a separate lawsuit filed by the CFTC against Minnesota. As previously reported by crypto.news, the regulator described the state’s legislation as one of the most aggressive attempts by a state government to restrict federally regulated prediction markets.
At the same time, Kalshi has increased its policy engagement efforts through Americans for Fair Markets, a newly launched advocacy group backed by the company. The organization, which counts former White House deputy chief of staff Taylor Budowich as a strategic advisor, said it plans to advocate for federal policies affecting prediction markets and regulated exchanges.
According to the group, its priorities include know-your-customer requirements, insider trading prohibitions, full CFTC funding, and restrictions on contracts related to war, death, terrorism, and assassination.
