CFTC Approves Kalshi’s BTCPERP, First Regulated U.S. Bitcoin Perpetual

The U.S. Commodity Futures Trading Commission (CFTC) on May 29 approved KalshiEX, LLC to list BTCPERP, a bitcoin perpetual futures contract that Kalshi calls the first perpetual product brought onto a regulated derivatives exchange in the U.S. The decision was issued under Commission Regulation 40.3, allowing KalshiEX to implement a bitcoin spot price-referenced product within the CFTC-overseen futures contract framework.

CFTC Clears BTCPERP as a Futures Contract

According to Release Number 9240-26, the CFTC issued an Order of Approval to KalshiEX, LLC to list the BTCPERP contract on KalshiEX, a designated contract market (DCM) licensed by the CFTC in the U.S.

Commission Staff Confirms the Categorization of Certain Crypto Asset Perpetuals as Foreign Futures and Issues No-Action Letter Regarding FCM Transfers of Customer Crypto Assets to Foreign Brokers as Margin:https://t.co/mNzwFL6Wve

— CFTC (@CFTC) May 29, 2026

Kalshi submitted BTCPERP on May 28 under Commission Regulation 40.3, a voluntary process for exchanges to seek CFTC review and approval of a product prior to listing. The CFTC stated that the contract complies with the Commodity Exchange Act, the agency’s regulations, and core principles applicable to designated contract markets.

This approval only covers BTCPERP as a futures contract. It does not apply to spot bitcoin trading, nor does it convert the product into a prediction market contract.

Kalshi Frames It as The First American Perpetual

Kalshi is using the BTCPERP approval to enter the perpetual futures market, a segment of crypto derivatives that has previously existed almost entirely outside the regulated exchange system in the U.S. The company called the launch of BTCPERP “The First American Perpetual Future,” noting that it is its first major expansion beyond the binary yes/no prediction-markets model.

BTCPERP is a cash-settled contract referencing the USD spot price of bitcoin via the CF Benchmarks Bitcoin Real Time Index. Each contract represents 1/10,000 BTC. The contract is designed to trade 24/7, has no fixed expiration date, and utilizes a funding payments mechanism to anchor the contract price close to the spot bitcoin price.

Perpetual futures have been popular for years on offshore crypto exchanges, where traders can maintain long or short positions without rolling over contracts based on maturities. With BTCPERP, Kalshi brings that structure onto a CFTC-regulated exchange in the U.S.

Kalshi stated that it intends to expand crypto perpetuals to more than a dozen currencies, subject to further regulatory reviews. The May 29 approval only directly covers BTCPERP. Contracts such as ETHPERP have not been approved in this order and will need to be reviewed under the conditions outlined by the CFTC for digital commodities with deep, active, and continuous spot markets.

Why BTCPERP Cleared CFTC Review

BTCPERP was designed around a 24/7 trading bitcoin spot market, a factor that played a central role in the CFTC’s review. A perpetual futures contract requires a reference market that operates continuously, is sufficiently deep, and has reliable price data for the funding mechanism to function properly.

Bitcoin meets those conditions more clearly than most other crypto assets. The bitcoin spot market trades across multiple venues, has massive liquidity, and utilizes widely recognized benchmark price feeds. These characteristics make BTCPERP a more suitable case for a first perpetual futures product within the framework of a regulated U.S. exchange.

The CFTC also reviewed the contract’s terms and conditions, the nature of the underlying market, compliance mechanisms, and KalshiEX’s ability to maintain BTCPERP in accordance with the Commodity Exchange Act as well as regulations applicable to DCMs. The approval was based not only on bitcoin’s size in the crypto market but also on the fact that the contract can be monitored and operated within the existing futures framework.

BTCPERP Brings Perps Into a Regulated U.S. Venue

Perpetual futures are one of the largest trading segments of the crypto market, but most of the activity remains outside the regulated exchange system in the U.S. According to CoinGecko’s 2025 annual report, the top 10 centralized exchanges recorded approximately $86.2 trillion in perpetual futures volume in 2025. Perpetual DEX volume reached approximately $6.7 trillion during the same period. 

2025 DEX vs CEX Perp Trading Volume. Source: Coingecko

With BTCPERP, Kalshi is bringing a product popular primarily on offshore platforms onto a CFTC-regulated exchange in the U.S. This creates a real-world case for how crypto perpetuals can be listed on U.S.-regulated venues, rather than existing solely through offshore structures.

CFTC Kept The Approval Narrow

The CFTC stated that perpetual contract design may not be suitable for all asset classes. For perpetual contracts that do not fall within the scope of the order, the agency encourages market participants to work with staff or submit products for review.

This is particularly important for crypto assets other than bitcoin. The order indicates that the CFTC may consider perpetual contracts on bitcoin or digital commodities that have a deep, active, and continuous spot market, but it does not make every token a default candidate for regulated perpetual futures.

Contracts such as ETHPERP, if Kalshi or another exchange wishes to list them, will need to be evaluated based on their own specific conditions regarding the underlying market, benchmark, funding mechanism, and oversight capabilities.

A Broader CFTC Push on Crypto Perps

On the same day, CFTC staff also announced Release 9241-26 regarding crypto asset perpetuals. The Market Participants Division confirmed the classification of certain products as foreign futures and issued no-action relief regarding Coinbase Financial Markets, Deribit, and the transfer of customer crypto assets to foreign brokers as margin under certain conditions.

This move is distinct from the BTCPERP approval in Release 9240-26. One allows KalshiEX to list contracts on a CFTC-regulated exchange in the U.S.; the other addresses certain crypto asset perpetuals under the foreign futures framework. The two decisions show that the CFTC is separating regulatory pathways for crypto perpetuals, rather than treating the entire perps market as a single group.

Therefore, BTCPERP is not just a new listing for Kalshi. It is the first test of how a product that has dominated global crypto trading can operate when brought into the regulated U.S. derivatives system.