Kalshi's recent announcement to list CFTC-regulated crypto perpetual futures marks a pivotal moment for the U.S. financial landscape.
So, what exactly are perpetual futures, or 'perps'? Think of them as futures contracts with no expiration date. This feature has made them incredibly popular among crypto traders globally, allowing them to hold positions for as long as they want. Until now, however, these instruments existed almost exclusively on offshore exchanges due to legal and regulatory uncertainty in the United States. This created a gap, leaving U.S. investors without regulated access to one of crypto's highest-volume products.
The path to this approval wasn't sudden; it was paved by several key developments. First, a shift in regulatory tone at the Commodity Futures Trading Commission (CFTC) early in 2026 signaled a greater openness to financial innovation. The new leadership began creating a more welcoming environment for new products. Second, the market itself demonstrated a clear need. Cboe's launch of 'continuous futures' in late 2025, a similar product, validated strong U.S. demand for 24/7 crypto exposure. Third, Kalshi proactively addressed compliance concerns, while the CFTC was already studying how to safely integrate perpetual-style products into the U.S. market.
The direct trigger for this change was the CFTC's formal approval order on May 29, 2026. This action officially removed the core legal barrier. But it was more than just a single approval. On the same day, the CFTC issued guidance clarifying how other companies, like Coinbase, could offer similar products. This coordinated move signaled a broader policy pivot: the U.S. is now actively working to bring this massive market onshore and under its regulatory oversight.
This development fundamentally alters the U.S. crypto market structure. It establishes a compliant playbook for others to follow, potentially unlocking a significant portion of the $86 trillion global crypto derivatives market for U.S. venues. It also heats up the competition between domestic exchanges, with Kalshi now positioned against giants like Coinbase and Cboe. For investors, it means safer, regulated access to a highly sought-after crypto trading instrument.
[Glossary]
- Perpetual Futures: A type of derivative contract similar to a traditional futures contract but without an expiration date, allowing traders to hold positions indefinitely.
- CFTC (Commodity Futures Trading Commission): The U.S. federal agency that regulates the derivatives markets, including futures, swaps, and certain kinds of options.
- Onshoring: The process of bringing financial products or services that were previously offered in offshore jurisdictions into a domestic, regulated market.