CFTC Opens Door to True Perpetual Futures in U.S. Crypto Markets

The Commodity Futures Trading Commission (CFTC) has taken a significant step to expand the availability of perpetual futures contracts in the U.S. crypto market. On October 3, the agency issued conditional no-action relief, announced on October 5, allowing U.S. derivatives exchanges to convert certain long-dated perpetual-style futures into true perpetual contracts. This move aims to bring more crypto derivatives trading onshore, challenging the dominance of offshore exchanges.

The relief applies to designated contract markets (DCMs) that meet specific customer-protection and procedural requirements. It enables exchanges to remove expiration dates from existing perpetual-style futures tied to broad-based security indexes, transforming them into true perpetual futures. Unlike conventional futures, perpetual contracts do not have a fixed expiration date and use periodic funding payments to align the contract price with the underlying asset.

The CFTC's action follows a request from Coinbase Derivatives, a CFTC-registered DCM, which sought permission to make these changes without waiting through the standard 10-business-day process. The relief is also part of the CFTC's broader effort to establish a federal crypto market structure using existing authorities. The agency is seeking public input on potential frameworks for leveraged retail crypto trading, including Regulation CTX and Regulation CAM.

This regulatory development builds on the CFTC’s May 2026 order concerning perpetual futures linked to bitcoin and other digital commodities. The latest relief is particularly relevant for contracts with open interest, as exchanges must seek feedback from participants and provide at least five calendar days’ notice before making any changes. The no-action positions expire on October 20, 2026, and the letter does not change the underlying requirements of the Commodity Exchange Act or CFTC regulations.