U.S. Regulator Set to Green-Light Crypto Perpetual Futures on Domestic Exchanges

The U.S. Commodity Futures Trading Commission (CFTC) is preparing to authorize true perpetual futures contracts for cryptocurrencies on regulated domestic exchanges within the next month. CFTC Chairman Michael Selig confirmed this timeline on March 3, signaling a significant move to bring a multi-trillion-dollar derivatives market back onshore.

A New Kind of Contract

The proposed framework will support contracts with no expiration date, differing from existing long-dated contracts on U.S. platforms that have expiration dates. These expiration-free contracts are expected to mirror the mechanics of those offered by offshore platforms like Binance and Bybit, which have dominated global derivatives volume. The CFTC has spent the past year studying the risks associated with perpetual derivatives, issuing a Request for Comment in April 2025 and later providing no-action relief for futures commission merchants to accept non-securities digital assets as collateral.

Coordinated Regulatory Effort

This initiative is part of a broader interagency effort called “Project Crypto,” a collaboration between the CFTC and the Securities and Exchange Commission (SEC) under Chairman Paul Atkins. The goal is to establish a coherent federal framework for digital assets, shifting from an enforcement-heavy approach to clear rulemaking. Chairman Selig advocates for classifying most crypto assets as commodities, positioning the U.S. as the “gold standard” for these markets and aiming to attract significant institutional and professional trading volume currently held offshore.

Potential Beneficiaries and Concerns

Professional traders and institutions are expected to be the primary beneficiaries, potentially shifting their operations to domestic venues to avoid compliance friction and structural limitations of current U.S. products. Analysts anticipate a material climb in regulated futures open interest. The accessibility for retail traders remains a more complex question, with the CFTC having raised retail protection as a concern in its April 2025 request for comment. Industry players are already actively lobbying for regulatory clarity, as evidenced by the funding of the Hyperliquid Policy Center.

Systemic Importance

Regulators argue that bringing this market onshore is crucial for systemic stability. The collapses of unregulated platforms like FTX highlighted the risks of large derivatives operating without mandatory reporting, capital requirements, or meaningful oversight. A supervised domestic market would provide regulators with real-time visibility into positions and exposures, mitigating risks to broader financial stability.