CFTC Signals Imminent Launch of U.S. Crypto-Linked Perpetual Futures

The United States’ top derivatives regulator is preparing to allow trading of crypto-linked perpetual futures within the coming weeks, opening the door to a financial instrument that has until now been largely confined to offshore exchanges.

CFTC to Establish Regulatory Framework

Speaking at the “Future of Finance” conference hosted by the Milken Institute, Commodity Futures Trading Commission (CFTC) Chairman Michael Selig said the agency is working on establishing a regulatory framework for perpetual futures contracts. These instruments enable traders to maintain leveraged positions tied to cryptocurrency prices indefinitely, without a fixed expiration date.
Selig emphasized that the U.S. needs to reclaim liquidity that has migrated to trading platforms in Asia, Europe, and the Bahamas. He stressed the importance of implementing sufficient investor protections to prevent potential market disruptions from impacting domestic financial stability. According to Selig, the CFTC aims to introduce “true perpetual futures, not long-dated futures”, in the United States within approximately the next month.

Why Perpetual Futures Are Gaining Popularity

Perpetual futures have grown increasingly popular among retail investors, as they allow speculation on price movements without requiring ownership of the underlying asset. Traders can hold positions for as long as they meet margin requirements.
However, these contracts have frequently been associated with heightened volatility in digital asset markets, particularly during periods of sharp price swings and large-scale liquidations.

Regulatory Adjustments Required for Broader Access

Although similar products are currently available in the U.S., the CFTC would need to amend certain rules to enable broader access to perpetual futures, especially for retail participants.
Such adjustments are expected to balance financial innovation with stronger risk management and investor protection standards.

Coordinated Federal Oversight of Digital Assets

Selig is also working closely with SEC Chairman Paul Atkins under a joint initiative known as the “Crypto Project”, aimed at coordinating federal oversight of digital assets. The initiative seeks to clarify asset classifications, define jurisdictional boundaries, eliminate duplicative compliance requirements, and reduce regulatory fragmentation.

Crypto Legislation Gains Momentum Under Trump Administration

Appointed by President Donald Trump, Selig has made the introduction of perpetual futures part of a broader strategy to strengthen risk management tools and improve price discovery within U.S. markets. In a January speech, he noted that despite clear market demand, previous leadership failed to establish appropriate conditions for these markets to operate domestically.

Digital asset legislation has become a priority during Trump’s second administration. In July, the first federal regulatory framework for stablecoin issuers was signed into law. Meanwhile, the U.S. Senate is working on broader crypto market legislation, although progress has stalled amid disagreements between the crypto industry and banking lobby groups over compensation mechanisms tied to stablecoin reserves.