The U.S. Commodity Futures Trading Commission (CFTC) has taken a position on cryptocurrency futures and how the industry can become more attuned to “24/7 trading, clearing and settlement.”
In Friday’s CFTC notice he said has approved perpetual futures contracts pegged to the Bitcoin spot price for the Kalshi prediction markets platform. Business announced around the same time it launched perpetual futures on its platform, moving closer to a derivatives exchange.
“​​The order was prepared based on the affidavits and representations made by Kalshi in support of its application for Commission approval, including an explanation and analysis of the terms of the BTCPERP Contract, the nature of the underlying commodity market, and the compliance of the BTCPERP Contract with applicable provisions of the Commodity Exchange Act and the Commission’s regulations issued thereunder, including the Fundamental Principles applicable to [Designated Contract Markets]– said the CFTC.
Source: CFTC
Perpetual futures contracts, or “perp” products, would allow Coinbase and Kalshi users to speculate on cryptocurrency prices without owning the underlying assets. The CFTC’s no-action stance on Coinbase and Kalshi’s approval meant the US agency was more open to cryptocurrency derivatives.
Coinbase Chief Legal Officer Paul Grewal called the CFTC’s decision was “huge news for the industry” on Friday’s post X. In March, the exchange launched stock futures contracts for non-U.S. investors.
Related: CFTC seeks to reverse Gemini settlement
In a separate CFTC notice outstanding between the suitability of established and cryptocurrency markets for 24/7 trading. According to the agency, “derivatives relating to crypto assets may be well suited to 24/7 trading due to their digital infrastructure and global reach,” while others, such as agricultural markets, may not rely on “unique customer bases, regional nature” and other factors.
CME Group also announces 24/7 cryptocurrency futures trading, pending regulatory review. Source: CME Group
Trump touts CFTC’s authority without additional commissioner appointments
On Tuesday, US President Donald Trump posted a statement on social media supporting Michael Selig and the CFTC in their fight for jurisdiction over forecasting markets. The post comes amid several state-level lawsuits trying to restrict or ban the platforms, with Selig arguing that the agency has “exclusive jurisdiction” under the Commodity Exchange Act.
Selig remains chairman and sole commissioner of the federal commodities regulator on the panel, which is expected to consist of a bipartisan group of five people. As of Friday, Trump had not announced any nominations to fill the seats.
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