Coinbase Crypto Perpetual Contracts Officially Legalized. Crypto Derivatives Say Goodbye to Offshore Gray Era.

Tradingkey - On May 29, the U.S. cryptocurrency industry reached a landmark regulatory breakthrough. Cryptocurrency exchange Coinbase ( COIN) and prediction market platform Kalshi jointly announced on Friday the official launch of cryptocurrency perpetual contract products. This marks the first time in U.S. history that investors are permitted to trade perpetual futures contracts through domestic licensed and regulated exchanges.

The product launch received formal listing approval from the U.S. Commodity Futures Trading Commission (CFTC), meaning that crypto perpetual futures—which were previously in a regulatory gray area—are now officially integrated into the domestic financial regulatory system, establishing a clear framework for onshore trading rules.

Perpetual futures are one of the most mainstream derivative instruments in the crypto market. Their core feature is the absence of an expiration date found in traditional futures, allowing traders to hold positions indefinitely without periodic contract rollovers. Furthermore, the product supports leverage of up to 50x, significantly amplifying market exposure and potential returns.

However, the CFTC also issued a regulatory policy statement, clarifying that it will implement a strict case-by-case review system for perpetual futures. Any new perpetual products referencing underlyings other than those currently approved must submit separate applications and pass regulatory review before listing.

The two exchanges stated that launching regulated onshore perpetual futures aims to provide institutional and retail investors with a secure and transparent trading channel. Previously, U.S. investors could only participate in perpetual futures trading through unregulated offshore platforms, facing high capital security and legal risks.

Kalshi CEO Tarek Mansour noted: "Onshore, secure, and regulated perpetual contracts will significantly enhance the capital allocation efficiency and risk management capabilities of U.S. companies."

It should be noted that the U.S. Commodity Futures Trading Commission stated: "Due to inherent differences between underlying markets, switching to 24/7 trading and clearing may not be suitable for all asset classes at this time."