US CFTC approves Bitcoin perpetual futures for the first time

The U.S. Commodity Futures Trading Commission (CFTC) has for the first time approved Bitcoin perpetual futures trading on regulated exchanges, CoinDesk reported on May 29. Perpetual futures, a popular derivative product that allows investors to speculate on an asset's price without an expiration date, had previously been unavailable in the U.S. due to regulatory hurdles, pushing the market to overseas decentralized exchanges (DEXs) like Hyperliquid. In a written contribution, CFTC Chairman Mike Selig said the decision lays the groundwork to bring innovation and liquidity back to the U.S. that was driven overseas by the previous administration. He added that the approval provides a key tool for risk management and price discovery. Despite ongoing risks, such as the recent flash crash on Hyperliquid, the CFTC plans to foster the market by managing systemic risks, including by limiting excessive leverage. The move comes as the SEC and CFTC are issuing a series of temporary regulatory guidelines to support the industry ahead of formal legislation from Congress, such as the CLARITY Act. These efforts include establishing a token classification system and reviewing exemptions for securities tokenization.