The CFTC issued two no-action letters on May 29 that officially opened the crypto perpetual futures market for US platforms. Coinbase became the first US exchange cleared to give its customers access to the offshore derivatives market through its subsidiary Deribit. Kalshi received permission to launch its own Bitcoin perpetual contract directly within US jurisdiction. The market American traders had no regulated access to until now generates $588 billion in monthly trading volume.
What Crypto Perps Are and Why the US Avoided Them
Perpetual futures are derivatives contracts with no expiration date. A trader opens a position and holds it for as long as they want, paying a small funding fee every few hours. A winning bet at 10x leverage multiplies the initial amount. A losing one gets liquidated, sometimes within minutes of opening.
The perps market has grown far beyond a niche product. In May 2026 alone, $588 billion in trading volume passed through these contracts. The entire DeFi sector posted $160 billion over the same month. The gap is nearly four to one in favor of perps, even as DeFi is considered one of the fastest-growing crypto segments.
US exchanges had stayed out of this market for years. The SEC and CFTC had not given a clear signal on what format would allow these products to launch domestically. Platforms registered offshore structures and effectively cut out US customers from derivatives trading. On May 29, CFTC Chairman Brian Selig said directly: "For years, one of the most significant crypto asset markets existed entirely outside the United States. Today, that changes."
How Coinbase Got Clearance in Under 24 Hours
On May 28, Coinbase sent the CFTC a request for a no-action letter. This US regulatory tool gives a company assurance that a specific action will not trigger an enforcement case. The CFTC responded in under 24 hours with a 16-page document outlining the conditions.
The access route runs through Deribit, the offshore derivatives exchange Coinbase acquired for $2.9 billion in 2025. Through Deribit, US customers will be able to trade perps on Bitcoin, Ethereum, Solana, Dogecoin, and other assets. Coinbase has not yet announced the final list. A source familiar with the matter told Decrypt the company will select only assets that are "fit for purpose" for US customers.
The key point for the broader market: the CFTC spelled out the conditions in a format any platform can reference. Kraken, Gemini, and other US exchanges now have a ready-made template. How quickly competitors respond will be clear within weeks.
Kalshi Launches the First US-Born Bitcoin Perpetual
Kalshi took a different path. While Coinbase acts as a gateway to Deribit's offshore liquidity, Kalshi received permission to build its own Bitcoin perpetual contract directly within the US regulatory system. The first product of this type to originate domestically in the history of the market.
Kalshi is known as a prediction market, but the company has been expanding into financial derivatives. Earlier in May 2026, CME received approval for Bitcoin volatility futures. Now Kalshi launches a perpetual tied directly to BTC price. That same week, the company filed suit against the state of Minnesota over a law criminalizing prediction markets.
A US-born product brings US-level protections for customers: regulatory oversight and investor safeguards that most offshore platforms do not have. For institutional clients, this is often a mandatory condition before entering a market. Coinbase chose the path of offshore liquidity through Deribit. Kalshi builds its own product inside the American regulatory perimeter. Which model attracts more liquidity will play out over the coming months.
Risks for Traders: $19 Billion in Liquidations in One Evening
The new approvals do not change the underlying mechanics of perpetual futures. In fall 2025, sharp crypto price swings over a few hours wiped out $19 billion worth of open positions. Most were not closed voluntarily but forced out through automatic liquidation when margin ran out.
The mechanism works like this: price moves against a position, margin shrinks. When it hits the set threshold, the exchange closes the position automatically. One large liquidation pushes the price further in the same direction, triggering the next. Within minutes, a market can move 10 to 15 percent, a distance that in normal conditions might take days.
For holders of Bitcoin or Ethereum without leverage, the new rules carry no direct threat. But broader access to leverage in the US shifts the overall volatility profile. More leveraged positions means sharper moves during stress events, even in the spot market.
ICE and NYSE Are Already Learning the Rules
Jeffrey Sprecher, head of Intercontinental Exchange (the parent company of NYSE), did not hide his interest in the crypto perps market this week. He said ICE is watching Hyperliquid closely and wants a "level playing field" from regulators for launching 24/7 onchain contracts. The company held multiple talks with Hyperliquid to better understand decentralized perpetuals mechanics.
Hyperliquid became the dominant player in crypto perps outside the US. Its native token HYPE rose more than 120% over the past year. The platform processes hundreds of billions of dollars in monthly volume without any US regulatory status. The arrival of regulated US exchanges changes the competitive setup.
The CFTC precedent opens the door for every major US platform. Kraken, Gemini, and others can reference Coinbase's 16-page no-action letter as a template for their own applications. The arrangement where offshore structures served US capital in this segment is starting to unwind.
The US crypto perpetuals market is officially open. The scale of what follows depends on how many platforms use the Coinbase and Kalshi precedent and how quickly they bring offshore liquidity back onshore.
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