CFTC Approves First U.S. Bitcoin Perpetual Futures Contracts
- The U.S. Commodity Futures Trading Commission (CFTC) has approved Kalshi to list the first true bitcoin perpetual futures contract, BTCPERP.
- Coinbase Financial Markets received guidance allowing it to offer global options and perpetual futures to U.S. clients via its Bermuda subsidiary.
- Perpetual contracts allow investors to speculate on future price movements without an expiration date, enhancing trading flexibility.
- The CFTC aims to limit excessive leverage and volatility in the new market for perpetuals, which can amplify both gains and losses.
- Recent market events highlighted risks associated with perpetuals, including a flash crash that wiped out $1.5 million in value due to thin liquidity.
This approval marks a significant shift in the U.S. regulatory landscape for cryptocurrency derivatives, potentially attracting more firms back onshore after previous regulations drove them abroad.
With the launch of BTCPERP and Coinbase’s new offerings, the CFTC is paving the way for regulated Bitcoin derivatives markets in the United States, addressing previous concerns about offshore trading practices.(Source)
