CFTC prepares framework for crypto perpetual futures as US moves to recapture offshore volume

US regulators are preparing new rules that will bring crypto perpetual futures onshore, reshaping how digital asset derivatives are traded across major exchanges.

CFTC unveils plan for US-based perpetual crypto markets

The US’s top derivatives watchdog, the Commodity Futures Trading Commission, is moving to permit perpetual futures contracts for cryptocurrencies within weeks. This marks a significant shift for a trading product that has so far operated almost entirely on offshore venues. Moreover, it signals Washington’s intent to compete directly with overseas platforms.

CFTC Chairman Michael Selig outlined the initiative on Tuesday at the Milken Institute’s Future of Finance conference. He said the agency will design a new framework specifically for these derivatives, which track crypto prices around the clock and are widely used on global exchanges. That said, the move will still need to align with existing US market oversight.

What perpetual crypto futures would mean for US markets

Under the plan, the CFTC will set rules for perpetual futures contracts that allow traders to maintain leveraged exposure to digital asset prices with no set expiration date. These instruments mirror the underlying market and are typically margined, enabling both speculative strategies and hedging. However, they have long been criticized for concentrating risk on lightly regulated offshore platforms.

Selig stressed that the goal is to bring this activity into regulated US markets rather than restrict it. He argued that the United States needs to recapture liquidity that has shifted to exchanges in Asia, Europe and the Bahamas over recent years. Moreover, he suggested that a clear structure overseen by the CFTC could improve transparency and risk management for high-volume derivatives trading.

The new regime for crypto perpetual futures is expected to offer US-based trading venues a clearer path to list these contracts directly to domestic clients. If implemented as described, it could reduce the incentive for professional traders and institutions to route orders through offshore platforms, while giving regulators better visibility into systemic risk.

Timeline and regulatory implications

According to Selig’s comments, the CFTC expects to roll out its framework for perpetual crypto products within a matter of weeks from the date of the conference. However, any final structure will have to coordinate with existing derivatives rules and could still be refined through public feedback. Market participants will be watching closely for margin, disclosure and risk-control requirements.

For now, the announcement underscores how US regulators are adjusting to the reality that perpetual derivatives have become a core feature of global digital asset trading. Moreover, by formalizing how such products can operate onshore, the CFTC aims to balance innovation with market integrity as crypto markets continue to mature.

In summary, the forthcoming CFTC framework is poised to shift a major segment of digital asset derivatives trading onto regulated US exchanges, potentially reshaping liquidity flows that for years have favored offshore platforms.