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The CFTC Just Gave Perpetual Contracts a Green Light — Here's What That Means for Crypto Trading in the US

(125 days ago) · 1 source · Summarized by CryptoBipto — how we make this

The US Commodity Futures Trading Commission (CFTC) has issued an advisory supporting crypto perpetual contracts and addressing the unique challenges of 24/7 trading. This signals a major shift in how US regulators view popular crypto-native derivatives products that have historically only been available on offshore exchanges.

WHY IT MATTERS

Imagine you could bet on whether the price of gold will go up or down, but without ever having to actually buy or sell gold — and your bet never expires. That's essentially what a 'perpetual contract' is in crypto. These are hugely popular trading tools, but until now, Americans couldn't easily use them because US regulators hadn't approved them. The CFTC (the agency that oversees commodities trading, like oil and wheat futures) just signaled it's okay with these products being offered in the US. This is a big deal because it could bring billions of dollars in trading activity to regulated American platforms, making crypto trading safer and more accessible for US users.

Perpetual contracts — also known as 'perps' — are the most traded instruments in all of crypto, generating trillions of dollars in volume on offshore platforms like Binance and Bybit.

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CFTC RegulationPerpetual ContractsCrypto DerivativesUS Crypto Policy24/7 Trading