Perpetual Futures Arrive in America, CME Sues CFTC

The multi-trillion-dollar offshore engine driving 90% of crypto trading has arrived in America. This is due to Coinbase offering US perpetual-style futures on its CFTC-regulated derivatives exchange, starting with nano Bitcoin and Ethereum contracts.

Perpetual futures make up the large majority of crypto derivatives activity, with derivatives accounting for roughly 80% of all crypto trading. These contracts are built to run indefinitely, using recurring funding payments between traders holding long positions and those holding short ones.

The US market is now importing funding payments, continuous leverage, and automatic liquidations across several exchanges, each one built to different specifications. This has led CME to sue the CFTC and Chairman Michael Selig in federal court, asking a judge to vacate the Kalshi order and the policy statement that came with it.