U.S. Regulators Approve 24/7 Crypto Perpetual Futures Trading

Original | Odaily Planet Daily (@OdailyChina)

Author | Wenser (@wenser 2010)

On May 29, the U.S. Commodity Futures Trading Commission (CFTC) issued 7*24 Trading Regulatory Guidance, emphasizing that crypto asset-related derivatives, due to their digital infrastructure and global continuous trading characteristics, are better suited for round-the-clock trading and clearing.

This means that the United States, previously considered a "no-go zone" for crypto perpetual contracts, has now opened up for the first time, further fueling its rise as the "crypto capital."

Numerous cryptocurrency trading platforms and traditional exchanges have responded by launching corresponding trading portals.

According to incomplete statistics, in 2025, the trading volume of crypto derivatives perpetual contracts is estimated to range between $60 trillion and $85 trillion, with a single-day peak volume reaching as high as $750 billion, accounting for approximately 75% to 80% of total crypto trading volume. (Odaily Planet Daily note: Kalshi posted that this market’s total trading volume in 2025 exceeds $90 trillion)

But for U.S. crypto platforms, regulators have not yet provided clear rules for this massive market.

Now, the U.S. CFTC has officially opened this market—previously with nearly zero share—to U.S. citizens and domestic cryptocurrency platforms and CEM exchanges. U.S. institutional and individual users can now trade crypto perpetual contracts seamlessly 24/7, eliminating past time zone barriers.

Michael S. Selig, Chair of the U.S. CFTC, called this a historic step toward “bringing the world’s most active crypto derivatives into the U.S. regulatory framework.” Regulatory actions have quickly prompted major crypto platforms to take action.

Direct beneficiaries of the new policy: Kalshi, Coinbase, CME

On that day, the U.S. CFTC issued an approval order to the designated contract market KalshiEX, LLC, permitting it to list BTCPERP, a perpetual contract referencing the spot price of Bitcoin, as a futures product. The contract was submitted for approval under CFTC Regulation 40.3 on May 29, 2026. Additionally, Kalshi plans to launch more than ten other crypto perpetual contracts in the future.

Additionally, Coinbase announced it has become the first and currently the only futures commission merchant (FCM) regulated by the U.S. CFTC, providing U.S. customers with access to global crypto derivatives markets, including crypto perpetual contracts and options (connected to platforms like Deribit, whose Bitcoin open interest exceeds $31 billion); Coinbase has also been approved to allow customer crypto assets and stablecoins as margin, subject to conditions for reuse.

Finally, as a traditional trading platform, CME is also a direct beneficiary of this policy change. Its Globex platform’s Bitcoin futures and options will now operate 7*24 trading starting this Friday, ending the previous fixed holiday schedule from Friday to Sunday, allowing institutional clients to seamlessly hedge against spot volatility.

However, this does not mean trading volume will surge abruptly—although the “CME gap” created by weekend closures has now closed, market liquidity remains primarily concentrated in ETF options and offshore perpetual contracts; the open interest in IBIT options significantly exceeds that of the CME crypto options market. Currently, large traders’ short positions continue to decline, reducing short-term short pressure, but long positions have not yet formed a clear trend.

The cautious stance behind the U.S. CFTC's guidance: commodity distinctiveness and enhanced authority and power

Yesterday, the relevant U.S. CFTC division, in addition to issuing a "No-Action Letter" regarding the Coinbase platform, specifically emphasized two matters:

1. Traditional commodities such as agricultural products may not be suitable for full 7*24 continuous operation due to their regional characteristics and trading structures;
2. Regulated trading platforms, swap execution facilities, derivatives clearing organizations, and futures brokers must comply with the Commodity Exchange Act (CEA) and related regulatory rules, and proactively assess risk management and operational arrangements when expanding to 24/7 trading.

In other words, 24/7 perpetual trading of commodities such as agricultural products is currently not permitted; any institution seeking to offer 24/7 perpetual trading of derivatives must first consult with CFTC staff and submit a detailed plan and risk analysis, which the CFTC will review on a case-by-case basis for compliance.

Thus, this move by the U.S. CFTC appears more like a special case handling for crypto assets, opening the door for more crypto platforms to offer derivatives products and further strengthening its regulatory authority over crypto asset derivatives.

Industry insiders offer overwhelmingly positive praise and support.

The regulatory guidance from the U.S. CFTC signifies that crypto derivatives in the U.S. market have truly achieved localized, 24/7 trading. Liquidity from previously excluded domestic users is expected to rapidly return, further increasing institutional participation and capital efficiency, while partially reducing risk management costs (rollover costs and weekend time gaps).

Strategy founder Michael Saylor wrote that the CFTC guidance is advancing the Bitcoin capital market, including 24/7 trading, BTC collateral, perpetual futures, options, and regulated access. This will benefit BTC holders, support the growth of MSTR, and aid STRC as a Bitcoin-backed digital credit.

Coinbase CEO Brian Armstrong cheered: "U.S. users have long been excluded from this 80% share of the global crypto market—including perpetual futures and options. But that’s changing now!"

Kalshi CEO Tarek Mansour said, “This marks Kalshi’s evolution from a leading prediction market to a next-generation derivatives exchange, where secure, regulated, U.S.-based perpetual contracts will improve capital allocation and risk management for countless American businesses.”

It is understandable for the beneficiary to make such a statement, while some external observers interpret it as "opening Pandora's box of speculative behavior."

U.S. public interest third-party organization: CFTC disregards public interest and investor protection

After the 2008 financial crisis, the third-party consumer protection organization Better Markets officially stated, “Retail investors are unlikely to fully understand the risks associated with perpetual futures. Last year, we urged the CFTC to require enhanced disclosures that are more easily understandable for retail investors. Unfortunately, not only did the CFTC fail to mandate such enhanced disclosures, but it also appears to have completely ignored the risks posed by the products it approved.”

The CFTC’s action lacks the professionalism expected of a regulatory body. However, given that Coinbase and Kalshi serve as advisory institutions on two CFTC advisory committees, this is not surprising. It is clear that the CFTC’s work is not aimed at the public interest or investor protection, but rather at the very industries it is supposed to regulate.

The language directly accuses the U.S. CFTC of potential insider dealings or some form of collaboration with Coinbase and Kalshi.

In addition to the direct beneficiaries mentioned above, U.S. crypto exchange Kraken also stated that it plans to launch its first CFTC-regulated perpetual futures product for the U.S. market within the next 30 days. Currently, perpetual futures on Kraken Pro are offered by NinjaTrader Clearing, LLC (operating under the name Kraken Derivatives US), a CFTC-registered futures commission merchant; related spot margin and perpetual futures products will be available on Bitnomial Exchange (Odaily Planet Daily note: the latter is a CFTC-regulated exchange recently acquired by Kraken’s parent company, Payward).

Setting aside polarized opinions, the door to a tens of trillions of dollars perpetual derivatives market is slowly opening to U.S. users.