The CFTC's Division of Market Oversight issued No-Action Letter 26-17 on 29 May 2026, providing no-action positions to designated contract markets against potential violations of CFTC Regulation 40.6 when converting existing perpetual-style digital commodity futures into true digital commodity perpetual futures. The relief expires 30 June 2026. The letter was issued alongside a Policy Statement on Crypto Asset Perpetual Contracts adopted by the full Commission on the same date, which establishes that crypto asset perpetual contracts constitute commodity futures under the Commodity Exchange Act and fall within CFTC exclusive jurisdiction.
CFTC Regulation 40.6 requires designated contract markets to file self-certifications or obtain Commission approval before amending listed contracts. Letter 26-17 grants relief from the self-certification obligation for the specific act of removing an expiration date from an existing digital commodity futures contract, on condition that the DCM: solicits feedback from market participants with open positions before conversion; provides advance notice and an opportunity for participants to exit; issues appropriate risk disclosures; and makes no other material modification to contract terms. DCMs must file the conversion amendments under either Regulation 40.5 or 40.6 and certify compliance with all conditions.
CFTC-registered designated contract markets operating digital commodity futures products may proceed with conversion under the no-action positions through 30 June 2026. The Commission simultaneously approved the first domestic bitcoin perpetual contract submitted by KalshiEX LLC under Regulation 40.5, establishing a formal precedent for domestic perpetual listings. Futures commission merchants that transfer customer crypto asset margin to foreign brokers to meet margin requirements on foreign crypto perpetual positions receive parallel guidance under a separate Commission staff letter confirming that certain crypto asset perpetuals qualify as foreign futures.
The 30 June 2026 expiration creates a hard deadline: DCMs that do not complete conversion within the no-action window must either obtain separate Commission approval or await a permanent rulemaking. The Commission has not yet published a proposed rule to codify the treatment of perpetual contracts after the letter expires, leaving the post-June regulatory treatment unresolved. The broader question of how crypto asset perpetual positions held by registered entities are margined, reported, and segregated under Parts 22 and 39 of the CFTC's rules also awaits further Commission guidance.
Licentium advises digital asset trading venues, commodity pool operators, and market intermediaries on CFTC regulatory compliance, contract design, and product authorisation strategy. We assist clients with matters arising from the perpetual contracts policy statement and the U.S. digital asset regulatory regime. Work we undertake includes regulatory mapping for new product listings, no-action relief analysis, CFTC registration assessments, and coordination with CFTC-registered intermediary counsel across our partner network.