U.S. CFTC May Fully Approve Crypto Perpetual Futures, Firms Prepare

The report says the CFTC (U.S. derivatives regulator) could move toward full approval of crypto perpetual futures (futures contracts without expiry), prompting industry participants to get ready.

Summary

A report indicates that the U.S. Commodity Futures Trading Commission, or CFTC (U.S. derivatives regulator), may fully approve cryptocurrency perpetual futures (futures contracts without expiry). The prospect of approval is leading firms to prepare for potential market changes. Perpetual futures are a widely used crypto derivatives product outside the United States because they allow traders to maintain positions without a fixed settlement date, typically using funding payments to keep contract prices close to spot markets. If approved, the move would mark a notable development for the U.S. crypto derivatives market, where regulation has generally been stricter than in offshore venues.

Terms & Concepts
  • CFTC: The Commodity Futures Trading Commission is the U.S. regulator that oversees derivatives markets, including futures and certain crypto-related products.
  • Perpetual futures: A type of futures contract with no expiration date, commonly used in crypto trading and usually anchored to spot prices through periodic funding payments.
  • Crypto derivatives: Financial contracts whose value is linked to cryptocurrencies, allowing trading, hedging, or leverage without directly holding the underlying asset.