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CFTC Lays Out Rules for Crypto Perpetuals Beyond <a href="https://jpykr.com/btc-usd/">Bitcoin</a>

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The CFTC’s policy statement establishes a case-by-case review framework for perpetual contracts beyond Bitcoin.
The agency said perpetual contracts raise novel questions around market structure, customer protection, and manipulation risk.
The policy statement was released alongside the Order approving KalshiEX’s BTCPERP contract.

The U.S. Commodity Futures Trading Commission (CFTC) announced its approach to reviewing perpetual contracts for assets other than Bitcoin. They will now evaluate each contract individually, following existing regulations (specifically, Commission Regulation 40.3).

The Commission announced its policy on the same day it approved KalshiEX’s BTCPERP contract, which is the first Bitcoin perpetual futures product available on an exchange regulated in the U.S. While the Kalshi approval was a first step, this new policy statement will determine how all other similar assets will be handled in the future.

Perpetual Contracts Must Go Through Regulation 40.3

The CFTC stated that perpetual contracts for things like agricultural products, precious metals, stocks, and specific market indexes – anything *not* already approved by the Kalshi order – need to be reviewed and approved by the Commission. They can be submitted for this approval through a voluntary process outlined in Regulation 40.3.

Typically, registered exchanges can approve new products themselves if they believe those products follow the rules. However, the agency stated that because perpetual contracts are different – they don’t have standard expiration dates and create new challenges for how markets operate and protect customers – it’s better to formally review these contracts to ensure they are in the public’s best interest.

The CFTC stated that each type of asset requires its own careful evaluation, considering its specific characteristics. They highlighted that perpetual contracts are probably not a good fit for commodities like agricultural products. However, contracts tied to stocks or specific stock indexes should be reviewed jointly by the CFTC and the SEC.

Why the CFTC Sees Perpetuals as Structurally Different

The policy statement focuses on clarifying why perpetual contracts are different from standard futures contracts and can’t be handled the same way.

Regular futures contracts have a set expiration date, which helps their price match the current market price. Perpetual contracts are different – they don’t expire. Instead, they use a funding rate, where traders pay or receive money based on their position, to ensure the contract price stays close to the current market price of the asset.

Perpetual contracts have a funding rate that creates a payment flow between long and short positions. If the perpetual contract price is higher than the spot price, long positions pay short positions. If it’s lower, short positions pay long positions. This system encourages traders to profit from the difference in price, bringing the perpetual contract closer to the spot price.

As a crypto investor, I’ve been following the CFTC’s concerns about perpetual futures contracts, and it makes sense. They’re saying these contracts are way more vulnerable to manipulation than traditional futures. With regular futures, the main worry is price manipulation right at the very end, when the contract settles. But with perpetuals, because they don’t have an expiry date, the ‘reference price’ needs to be rock solid *constantly*, at every funding interval, for as long as the contract exists. That continuous need for a reliable price is what creates a much bigger manipulation risk.

Policy Follows Year-Long CFTC Engagement on Perps

This statement explains how the Commission developed this framework. In April 2025, the CFTC asked for public feedback on two topics: trading and clearing of perpetual derivatives, and round-the-clock derivatives trading. The CFTC wanted input on how these products would work, how they would be monitored, cleared, and what margin requirements should be.

In July 2025, the President’s group studying digital currencies released a report, titled Strengthening American Leadership in Digital Financial Technology. It suggested that the CFTC and SEC permit qualified investors to trade derivatives – including perpetual contracts – through companies that are properly regulated. The report also urged both agencies to quickly provide clear guidance using their existing powers.

This policy is the CFTC’s clear answer to recent suggestions. Instead of letting companies approve these new contracts themselves, the agency is creating a specific approval process, showing they plan to oversee innovation in perpetual contracts rather than allowing it to develop without limits.

What the Policy Statement Does Not Do

As an analyst, I’ve been reviewing the CFTC’s recent policy statement, and it’s important to understand what it *doesn’t* do. The CFTC has been very clear that this isn’t a binding rule. It doesn’t create any new legal obligations, change existing laws or regulations, or give anyone a right they can enforce in court. Essentially, it’s the CFTC sharing its current thinking on a topic, issued as a policy statement under standard administrative procedures, not a formal rulemaking process.

The Commission didn’t rule out making further changes. Their statement indicates the CFTC could still address perpetual contracts later on, potentially through new policies, explanations, or formal rules.

Broader Context: A Coordinated Perps Push

This policy statement was part of a larger set of actions taken by the CFTC. That same day, the agency also approved a new contract from KalshiEX, gave Coinbase Financial Markets permission to allow its U.S. customers to trade on Deribit, and published guidance on round-the-clock trading and settlement.

These actions mark the biggest single-day change in U.S. regulations concerning cryptocurrency derivatives. The new policy means that whenever exchanges launch new perpetual contracts – a trend recently boosted by companies like Kalshi, Polymarket, and the partnership between ICE and OKX – they’ll need to get specific approval from the CFTC first.

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2026-05-30 11:17