Kalshi gains CFTC approval for perpetual futures, sending US exchange stocks lower

Kalshi just pulled off something no one in the US derivatives market has done before. The CFTC approved its BTCPERP contract on May 29, 2026, making it the first perpetual futures contract tied to Bitcoin’s spot price available on a US designated contract market.

The approval took exactly one day. Kalshi submitted the contract on May 28, and by May 29, the green light was on.

What perpetual futures actually are, and why they matter

Perpetual futures have no expiration date, no rollover costs, and they track the spot price of the underlying asset continuously. Traders can hold leveraged positions on Bitcoin indefinitely without worrying about contract expiry.

The total annual notional trading activity in crypto derivatives is estimated to be in the tens of trillions of dollars. Almost all of that volume has lived outside the US regulatory perimeter, on platforms like Binance, Bybit, and OKX.

Kalshi’s contract uses the CF Benchmarks index to track Bitcoin’s spot price and settles in cash.

The CFTC went further than just Kalshi

Alongside greenlighting Kalshi’s contract, the CFTC issued a policy statement that allows other designated contract markets to self-certify similar perpetual contracts. The Commission also issued a no-action letter to Coinbase, enabling US customers to access global perpetuals through Coinbase’s Bermuda-based affiliate.

CME is not happy about any of this

The Chicago Mercantile Exchange filed a lawsuit against the CFTC and its Chairman on June 18, 2026. CME’s argument is that perpetual futures contracts should be classified as swaps under the Dodd-Frank Act, not futures. If CME wins this argument, Kalshi’s BTCPERP contract would face a fundamentally different, and far more burdensome, compliance regime.

CME also contends that the CFTC’s one-day approval bypassed necessary statutory requirements and public comment periods, calling the decision arbitrary.

Shares of major US exchanges came under selling pressure after the CFTC’s announcement, as investors recalculated the competitive landscape.

What this means for investors

US-based traders now have access to the same type of product that has driven the vast majority of crypto trading volume globally, but with domestic regulatory protections.

If a federal court determines that perpetual futures are swaps, the regulatory framework changes entirely. Kalshi and any other exchange that self-certifies a similar product would need to restructure their offerings.

Coinbase’s no-action letter suggests that it could route US customer orders to its Bermuda affiliate for perpetual trading, which creates a hybrid onshore-offshore model.

Disclosure: This article was edited by Editorial Team. For more information on how we create and review content, see our Editorial Policy.