CFTC Chair Defends First US Bitcoin Perpetual Futures Launch

TLDR

• The CFTC approved the first US-regulated Bitcoin perpetual futures contract, launched by KalshiEX on May 29.
• CFTC Chairman Michael Selig said the approval keeps crypto derivatives trading activity within regulated US markets.
• The BTCPERP contract launched with a 10x leverage limit, lower than the leverage levels offered by many offshore exchanges.
• Selig argued that regulatory inaction had pushed trading volume to foreign platforms instead of reducing demand.
• The CFTC also granted no-action relief allowing Coinbase to connect US customers with foreign perpetual futures markets.

The Commodity Futures Trading Commission has approved the first regulated Bitcoin perpetual futures contract in the United States. KalshiEX launched the product on May 29, while CFTC Chairman Michael Selig defended the decision. He said the agency chose to support domestic trading demand instead of allowing activity to remain offshore.

Bitcoin Perpetual Futures Gain US Regulatory Approval

KalshiEX introduced the first US-regulated Bitcoin perpetual futures contract after receiving CFTC approval. The product became available on May 29 and created a new regulated crypto derivative for US traders. The approval also marked the first new derivative category authorized by the agency in more than a decade.

Perpetual futures differ from traditional futures because they do not expire. As a result, traders can keep positions open without rolling contracts forward. These products already dominate crypto derivatives trading on offshore exchanges.

Selig defended the approval during recent public remarks. He said demand for perpetual contracts already exists across global crypto markets. He argued that US regulators should allow domestic participation instead of pushing activity abroad.

He pointed to trading volume on exchanges operating in Asia, Europe, and the Bahamas. According to Selig, regulatory delays did not stop demand from growing. Instead, those delays directed liquidity toward foreign platforms.

Selig Defends Domestic Market Access

Selig maintained that the United States should compete for crypto derivatives activity. He said the agency approved the contract because traders already use similar products elsewhere. He also dismissed criticism from established market participants.

“Incumbents will always fear the future,” Selig said while discussing opposition to the approval. His comments targeted concerns raised by existing derivatives providers. Those concerns emerged after the agency approved the new contract structure.

CME Group has criticized the arrival of perpetual futures on regulated US venues. The company already offers Bitcoin and Ethereum futures with fixed expiration dates. Consequently, the new product introduces direct competition within regulated crypto derivatives markets.

The CFTC also issued no-action relief involving Coinbase. The relief allows Coinbase to connect US customers with foreign perpetual futures markets. As a result, customers can access offshore contracts without triggering enforcement action.

New Contract Launches With Conservative Limits

Selig became CFTC Chairman on December 18, 2025. Since then, he has moved quickly on several crypto-related regulatory decisions. The perpetual futures approval stands among the agency’s recent actions.

The BTCPERP contract launched with a leverage limit of 10x. Therefore, traders can control positions worth ten times their posted collateral. The limit remains lower than leverage levels offered on many offshore platforms.

Several international exchanges provide leverage levels reaching 50x or 100x. By comparison, the US-regulated product starts with tighter restrictions. The contract still gives traders access to a structure widely used across crypto markets.

KalshiEX remains the first regulated US venue offering a Bitcoin perpetual futures contract. The BTCPERP product became available on May 29 with a 10x leverage cap. Selig continues to defend the approval as demand for perpetual contracts remains active.

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