The U.S. derivatives watchdog is edging crypto markets closer to a 24/7 trading model, signaling a more permissive posture toward crypto-based derivatives. The Commodity Futures Trading Commission (CFTC) issued an order granting Kalshi approval to list Bitcoin perpetual futures tied to the spot price, while also granting Coinbase a no-action position for similar BTC-based contracts. The moves come as the agency weighs how prediction markets and traditional futures frameworks can coexist with rapidly evolving digital assets.
The CFTC’s Friday notice confirms Kalshi’s BTCPERP perpetual futures contract, designed to track Bitcoin’s spot price and settle accordingly. The regulator emphasized that the approval rested on Kalshi’s representations about the contract’s terms, the underlying market, and compliance with the Commodity Exchange Act and the Commission’s core principles for designated contract markets. In parallel, Coinbase was granted a no-action stance for its own BTC perpetual futures, underscoring a willingness to explore crypto derivatives within a regulated framework.
Paul Grewal, Coinbase’s chief legal officer, described the decision as a “massive first for the industry” in a post on X, noting the broader trend toward more permissive access to crypto derivatives. Coinbase previously expanded into perpetual futures for non-U.S. traders in March, broadening the reach of crypto derivatives on mainstream trading venues.
The agency didn’t stop at Kalshi and Coinbase. In a separate notice, the CFTC contrasted the suitability of 24/7 trading for crypto-based derivatives with more traditional markets, like agriculture, where 24/7 activity may be less appropriate given regional customer bases and other market dynamics. The regulator highlighted that derivatives referencing crypto assets may be well-suited for around-the-clock trading due to their digital infrastructure and global reach. At the same time, it signaled a cautious stance on applying 24/7 models uniformly across all asset classes.
Industry echoes of that sentiment arrived from other corners of the market. CME Group has signaled intent to offer 24/7 crypto futures trading, subject to regulatory review, signaling that a broader ecosystem shift toward continuous trading could be on the horizon.
Key takeaways
- Kalshi wins approval for BTCPERP: The CFTC approved a Bitcoin perpetual futures contract on Kalshi’s prediction-market platform, marking a notable step toward exchange-like crypto derivatives on the regulatory map.
- Coinbase receives no-action relief: The exchange can explore BTC perpetual futures under the agency’s current stance, signaling growing U.S. legitimacy for retail crypto derivatives.
- 24/7 trading under scrutiny: The CFTC separately underscored that crypto derivatives may be better suited to around-the-clock trading than some traditional markets, while acknowledging not all asset classes share this feature.
- Regulatory and market dynamics: The developments occur amid ongoing regulatory repositioning and broader industry moves toward 24/7 crypto trading, including CME Group’s potential entry into the space.
- Political context: The evolving framework unfolds alongside political commentary on CFTC authority and jurisdiction over prediction markets, with nominations for commissioners still outstanding.
Kalshi’s BTCPERP: a milestone for prediction markets meeting crypto futures
The CFTC’s approval of BTCPERP places Kalshi at a unique crossroads between prediction markets and crypto derivatives. By tying a perpetual contract to Bitcoin’s spot price, Kalshi offers a mechanism for participants to speculate on crypto prices without owning the underlying asset. The regulator’s decision rested on Kalshi’s representations about contract terms, market structure, and compliance with applicable laws and core principles for designated contract markets. This move positions Kalshi as a platform that could operate with a more derivatives-exchange-like footprint within the U.S. regulatory framework.
As Kalshi moves forward, market participants will be watching how liquidity, margining, and settlement mechanics evolve in a framework that combines elements of prediction markets with perpetual futures dynamics. The BTCPERP contract promises to unlock new hedging and speculation avenues for both retail and institutional users who want continuous exposure to Bitcoin’s price movements.
Coinbase’s no-action stance: signaling incremental openness for U.S. crypto rails
Coinbase’s no-action relief, paired with Kalshi’s approval, signals a cautious but notable expansion of permissible crypto derivatives in the United States. The decision aligns with Coinbase’s broader strategy to offer perpetual futures products to diverse client bases while navigating the regulatory environment. Paul Grewal hailed the development as a turning point for the industry, underscoring the potential for regulated, 24/7 access to crypto derivatives on mainstream platforms. This follows Coinbase’s March rollout of stock perpetual futures for non-U.S. traders, illustrating a broader push into continuous, instrument-driven trading outside traditional stock markets.
24/7 trading: regulatory nuance, market implications
The CFTC’s second notice clarifies that the suitability of around-the-clock trading for derivatives is not universal. Crypto assets, with their digital infrastructure and global reach, may be well-suited to 24/7 trading, the agency contends. Traditional markets—such as agricultural commodities—pose distinct considerations tied to regional customer bases and physical delivery dynamics, which may complicate non-stop trading schemes. The nuanced stance suggests regulators are weighing the benefits of continuous liquidity and accessibility against the risks of around-the-clock activity in more service-heavy or regionally segmented markets.
Beyond Kalshi and Coinbase, the broader market is watching CME Group’s public statements about 24/7 crypto futures trading as an indicator of where the mainstream exchange ecosystem might converge. Pending regulatory review, the industry could see a broader rollout of continuous trading across multiple venues, potentially reshaping liquidity, risk management, and price discovery for crypto derivatives in the United States.
Regulatory context and political backdrop
The regulatory narrative surrounding crypto derivatives remains active. In parallel to these developments, U.S. President Donald Trump publicly supported the CFTC’s authority over prediction markets in a social media post, reflecting ongoing debates about jurisdiction and enforcement. The CFTC chair, Michael Selig, remains the sole commissioner in a five-member panel, with no announced nominations to fill the other seats as of Friday. The political and regulatory dynamics suggest continued scrutiny and potential shifts as more platforms seek to offer crypto-based derivatives under a U.S. regulatory umbrella.
As the year unfolds, observers will be monitoring how these approvals translate into real-world activity: Will Kalshi’s BTCPERP attract meaningful liquidity? How will Coinbase’s no-action status influence retail adoption and platform competition? And what further clarifications will regulators provide on the contours of 24/7 crypto trading versus traditional markets?
In the meantime, the market should brace for continued evolution in the U.S. framework for crypto derivatives, with investors and traders watching for further platform approvals, margin and settlement standards, and any forthcoming policy guidance that could redefine the boundaries of permissible crypto exposure on national exchanges.
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