CFTC advances crypto rules for perpetual contracts

TLDR

The CFTC is using its existing powers to build a US rule framework for crypto perpetual derivatives, with perps becoming a central regulatory focus.

1. CFTC leaders have sent two crypto market proposals to the White House and explicitly framed perpetual contracts as a priority for new derivatives rules.
2. The agency aims to create a designated contract market category for leveraged crypto perps, extending a path already used to approve Kalshis Bitcoin BTCPERP contract.
3. Spot crypto trading remains outside CFTC jurisdiction, so traders should watch upcoming rule text, further perp approvals, and possible enforcement around volume incentives and wash trading.

Deep Dive

1. CFTCs New Rulemaking Push

After the Senate blocked the CLARITY Act, CFTC Chair Mike Selig said the agency will move ahead under existing law with crypto market-structure rules focused on perpetual contracts, not waiting for fresh legislation. Recent coverage notes that the CFTC has submitted two proposed rules for crypto asset trading and crypto asset markets to the White House Office of Information and Regulatory Affairs for review at the prerule stage, meaning the text is not yet public but the process has formally started.

Selig has also highlighted the need to rethink rules for 24/7, on-chain markets driven by algorithms and AI agents, signalling that the framework is meant for modern perp venues rather than only traditional futures platforms. Together, this positions perps as the main near-term channel for US-level crypto regulation.

2. What Changes For Perp Venues

Reports indicate the CFTC can create a tailored designated contract market category that allows exchanges to offer leveraged crypto perpetual contracts under its derivatives oversight, even though it cannot regulate the underlying spot markets without new law. This would effectively codify how US-registered venues run perps, including margin, funding, and risk controls.

A concrete precedent already exists: on May 29, the CFTC approved KalshiEXs Bitcoin-linked BTCPERP perpetual contract and later issued no-action relief to let some digital commodity futures be converted into true perps, subject to customer-protection rules. Future contracts, including those tied to other assets, will be reviewed case by case rather than granted blanket approval.

3. Risks And What To Watch

Regulatory scrutiny is already visible. The CFTC is reviewing unusual, clustered trading in Kalshis Ether perpetual market, where nearly identical $5,500-sized trades generated over $5 billion in volume, raising questions about potential wash trading and incentive-driven activity. Kalshi denies wrongdoing and attributes the pattern to standard market-making programs, but staff have warned that aggressive rebates can push traders to chase volume targets.

Crypto users should watch three signals:

1. The eventual text of the CFTCs crypto asset rules and any new perp-specific requirements.
2. Additional approvals or rejections of perp products across venues, including any moves involving major platforms.
3. Enforcement or guidance around volume incentives, self-matching controls, and funding mechanisms, which could materially change how perps are designed and traded.

Conclusion

The CFTC is advancing a derivatives-focused framework that brings crypto perpetual contracts closer to formal US oversight while leaving spot markets to future legislation. For traders and platforms, the key edge will come from understanding how these rules reshape leverage, funding, and venue selection, and from tracking which exchanges successfully secure CFTC-regulated perp status.