The CFTC is pushing to bring a multi-trillion-dollar derivatives market back onshore — and it's giving itself roughly a month to do it.
Key Takeaways
CFTC Chairman Michael Selig confirmed the agency will authorize true crypto perpetual futures on U.S. exchanges within the next month
The move targets liquidity currently concentrated in Asia, Europe, and the Bahamas
“True” perpetuals differ from previous long-dated contracts — they carry no expiration date
The effort is coordinated with SEC Chairman Paul Atkins under a broader initiative called “Project Crypto”
The U.S. Commodity Futures Trading Commission is moving to authorize true perpetual futures contracts for cryptocurrencies on regulated domestic exchanges, with Chairman Michael Selig confirming on March 3 that the agency expects to finalize the framework within a matter of weeks.
The announcement marks a significant escalation in Washington’s effort to reclaim trading volume that has, for years, flowed to offshore venues in the Bahamas, Europe, and across Asia — jurisdictions that have long operated with fewer restrictions and, critics argue, far less accountability.
A Different Kind of Contract
The distinction between what’s being proposed now and what already exists on U.S. platforms matters. Coinbase launched so-called perpetual-style products in July 2025, but those were structured as long-dated contracts with expiration dates — a workaround that satisfied the letter of existing rules without truly replicating what offshore traders have access to. The new framework would support contracts with no expiration date whatsoever, mirroring the mechanics that have made platforms like Binance and Bybit dominant in global derivatives volume.
That difference is not cosmetic. Expiration-free contracts behave differently, attract different trading strategies, and, according to regulators, require a different supervisory approach. The CFTC spent much of the past year studying exactly that. In April 2025, the agency issued a formal Request for Comment seeking input on the risks perpetual derivatives pose to market integrity and retail investors. By December, it had issued no-action relief allowing futures commission merchants to accept non-securities digital assets as collateral — a quiet but consequential shift in how crypto can move through the regulated financial system.
“Project Crypto” and the Atkins Alignment
The push for perpetuals is not happening in isolation. It forms part of a broader interagency effort dubbed “Project Crypto,” a coordinated initiative between the CFTC and the Securities and Exchange Commission under Chairman Paul Atkins. The goal, according to officials involved, is to establish a coherent federal framework for digital assets — one that moves deliberately away from what both agencies have acknowledged was a period defined by enforcement actions rather than clear rulemaking.
Selig has been explicit about the stakes. He has argued publicly that most crypto assets should be classified as commodities, placing them squarely within the CFTC’s jurisdiction, and that the United States has an obligation — and an opportunity — to become what he calls the “gold standard” for these markets. That framing is partly competitive: regulators are watching significant institutional and professional trading volume sit in jurisdictions with weaker oversight, and they want it back.
Who Stands to Gain
The immediate beneficiaries of a functioning domestic perpetuals market would likely be professional traders and institutions that currently navigate the compliance friction of using offshore platforms or the structural limitations of existing U.S. products. Analysts expect regulated futures open interest to climb materially as those participants shift to domestic venues — assuming the final rules offer genuine parity with offshore mechanics.
Retail access is a more complicated question. The CFTC’s April 2025 request for comment specifically raised retail protection as a concern, and how aggressively the final framework restricts or structures access for non-professional traders will shape the product’s adoption curve.
On the lobbying side, new money is already moving to influence the outcome. A 1 million HYPE token grant recently funded the Hyperliquid Policy Center, an organization established specifically to advocate for regulatory clarity in decentralized markets — a sign that industry players are not waiting to see how the rules shake out before trying to shape them.
The Systemic Argument
Beyond the commercial rationale, regulators have made a systemic case for bringing this market onshore. The collapses of FTX and other unregulated platforms exposed what happens when large derivatives books operate without mandatory reporting, capital requirements, or meaningful oversight. CFTC officials argue that a supervised domestic market would give regulators real-time visibility into positions and exposures that are currently invisible to them — a gap they consider a genuine risk to broader financial stability.
Whether the framework that emerges over the next month is tight enough to prevent the next blowup, or permissive enough to actually attract the volume regulators say they want — is the tension that will define how this experiment plays out.
