CFTC Issues Relief Allowing Exchanges to Launch True Crypto Perpetuals

The CFTC issued no-action relief letting exchanges convert perpetual-style crypto futures into true perpetual contracts before June 30.

The CFTC’s Division of Market Oversight has issued no-action relief to designated contract markets. The relief allows DCMs to convert perpetual-style digital commodity futures into true perpetual futures contracts. 

This follows recent commission actions clarifying the regulatory treatment of such contracts. Those actions covered bitcoin and other digital commodities with active and continuous spot market trading. The no-action positions expire on June 30, 2026.

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What the CFTC No-Action Letter Covers

Under the letter, DCMs can remove expiration dates from existing perpetual-style futures contracts. That single change converts them into true digital commodity perpetual futures. 

The conversion takes effect once exchanges satisfy a set of customer protection and procedural conditions outlined in the letter.

Those conditions include soliciting feedback from market participants holding open positions. DCMs must also provide advance notice and allow traders to exit positions before conversion. 

Risk disclosures must be offered, and no other material contract terms can be changed alongside the amendment.

Exchanges must file the amendments under CFTC Regulations 40.5 or 40.6. They must also certify compliance with all conditions stated in the letter. 

Regulatory Background on Crypto Perpetual Futures

The letter builds on a broader regulatory effort at the CFTC. 

Earlier commission actions clarified how true perpetual futures contracts referencing bitcoin should be treated under existing rules. That guidance opened the door for exchanges to pursue permanent, expiry-free structures for crypto derivatives.

Perpetual futures contracts are widely used in crypto markets. 

Unlike traditional futures, they carry no settlement date. The CFTC’s clarification is a significant step toward bringing that product structure into the regulated U.S. derivatives market. DCMs now have a formal pathway to offer compliant versions of these instruments.

The June 30 expiry date on the no-action positions means exchanges will need to move quickly. Any DCM seeking to convert contracts must meet all procedural requirements before that deadline passes.

CFTC Takes New Mexico to Court Over Kalshi Dispute

Separately, the CFTC has also moved against New Mexico in federal court. 

The commission filed a lawsuit targeting the state’s use of gaming laws against CFTC-registered prediction markets. At the center of the dispute is KalshiEX LLC, a federally regulated exchange.

New Mexico had sued Kalshi in state court days before the federal action. 

The state accused the exchange of running unlawful online sports betting and sought injunctive relief. The CFTC responded by filing for a declaratory judgment in federal court.

The commission is asking the court to confirm its exclusive authority over event contracts. It also wants a permanent injunction blocking New Mexico from enforcing what it calls preempted state laws against CFTC registrants.

New Mexico is one of nine states now in conflict with federal prediction market authority, as earlier reported by LiveBitcoinNews.