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CFTC Issues Policy Statement and Approves First Onshore Bitcoin Perpetual Contract, May 2026

On May 29, 2026, the CFTC approved KalshiEX LLC's BTCPERP contract as the first bitcoin perpetual futures contract listed on a US-registered designated contract market and issued a Policy Statement establishing that perpetual crypto contracts require individual Commission approval under Regulation 40.3. The actions bring the dominant form of global crypto derivative trading into the US regulated perimeter for the first time.

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On May 29, 2026, the Commodity Futures Trading Commission (CFTC) took two coordinated final actions. First, it approved KalshiEX LLC's BTCPERP contract, the first bitcoin perpetual futures contract approved for listing on a US-registered designated contract market. Second, it issued a Policy Statement on Perpetual Contracts describing how the Commission will review future applications under Commission Regulation 40.3.

Under the Policy Statement, perpetual contracts require individual CFTC approval under Regulation 40.3. Perpetuals lack an expiration date and use a funding rate mechanism to keep contract prices aligned with spot prices, replacing the convergence function that expiry performs in standard futures contracts. The Commission determined that existing guidance does not address perpetuals for asset classes beyond those covered in the KalshiEX Order, making case-by-case review necessary for future products. The BTCPERP contract references the spot price of bitcoin and is listed on a CFTC-registered designated contract market.

Domestic futures exchanges seeking to launch perpetual crypto products now have a defined application pathway via Regulation 40.3 approval. Digital asset trading platforms that previously offered perpetual contracts only on offshore venues gain a route to bring those products into the US regulated perimeter. Retail and institutional crypto traders gain access to perpetual products on a CFTC-supervised venue. Any exchange seeking to list a perpetual contract on a non-bitcoin asset must submit a separate application and receive individual Commission approval before listing.

The Policy Statement does not create blanket permission to list perpetual contracts across asset classes. Each new perpetual product requires individual Commission approval before listing. The CFTC indicated it will examine leverage limits, volatility controls, and systemic risk factors when reviewing future applications. Open questions include how the Commission will treat perpetuals referencing baskets of tokens, stablecoins, or tokenised real-world assets.

Licentium advises clients on CFTC derivatives regulation and digital asset product structuring and can connect clients to specialist US derivatives counsel. Crypto exchanges, token issuers, and institutional market participants considering perpetual product launches may benefit from reviewing the Policy Statement and the BTCPERP Order against their proposed structures before filing. Work we undertake includes digital asset derivatives compliance, CFTC product approval strategy, crypto exchange regulatory advisory, and tokenised asset structuring.

Source: CFTC, Policy Statement Concerning the Listing of Perpetual Contracts, Press Release pr-9242-26, 29 May 2026

Crypto Regulatory

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