The Commodity Futures Trading Commission has moved to bring true perpetual futures into regulated US derivatives markets, issuing a no-action letter on October 3 that shields eligible exchanges from enforcement action when they strip expiration dates from certain index futures.

Under the relief, the CFTC's Division of Market Oversight stated that the agency will not take enforcement action against Coinbase Derivatives or any designated contract markets—CFTC-regulated exchanges—that eliminate expiration dates for eligible broad-based security index futures. On October 5, the CFTC publicly declared the no-action relief tied to the trading structure of perpetual futures, a product format—futures without an expiry, held in line with the underlying market by periodic funding payments—that has long existed only in offshore digital currency markets (press release; no-action letter).

Removing the expiry turns a future into a perpetual

The approval followed a request from Coinbase Derivatives CEO Jane Downey, filed on October 1 (request letter). Contract amendments under Regulation 40.6 normally require a waiting period of 10 business days, but the CFTC ruled that eligible exchanges can implement the expiration-date change immediately.

That flexibility comes with conditions. Contracts must reflect broad-based security indices, and exchanges must notify traders holding open positions before making amendments. Five days' notice must be given, positions must be kept open under similar conditions, and risk disclosures must be provided. No other aspects of the contract terms may change, and exchanges must demonstrate compliance with that requirement. The relief carries an October 20 deadline, which leaves eligible venues a short window to act and makes it worth watching how many designated contract markets beyond Coinbase take up the change.

Contracts that already behaved like perpetuals

According to Coinbase, its products already work much like true perpetuals. They employ regular funding rates to keep prices close to market rates while carrying expiration dates reaching up to 25 years into the future. Eliminating the deadlines removes unnecessary contract rollovers—the routine of closing a position as a contract nears expiry and reopening it in the next one—and brings the legal terms closer to how the products actually traded and used.

The request letter named six perpetual-type futures: US500, Tech100, Defense10, AI10, China10, and Coin50. The key point is that Coinbase is not changing the products themselves; it is simply removing an expiry date that no longer matched how they have actually been trading.

Building on the CFTC's digital-asset framework

The decision extends previous CFTC actions. In May, the Commission authorized perpetual futures on underlying assets with deep and active spot markets, such as bitcoin (press release). The CFTC later indicated that futures markets for other asset classes would still require separate review.

The step is significant because the agency is no longer addressing only crypto-based perpetuals. Its separate guidance on 24/7 trading (press release) also signals that the CFTC is broadening its view of markets that operate around the clock.

Coinbase's request and the race for 24/7 rails

Coinbase argued that the normal review period could leave economically similar products trading under different expiry terms, creating market confusion. The move also fits the company's broader 24/7 market strategy, as exchanges compete to build venues that operate beyond traditional trading hours.

Demand is already substantial. CoinGecko research found that RWA perpetual trading volume rose from $230 million in early 2025 to $347.17 billion in May 2026 (report).

The offshore liquidity question, and the leverage it carries

The bigger question is whether clearer US rules can pull more perpetual trading from offshore and decentralized venues into regulated domestic markets. If that happens, more liquidity could move onshore, and with it the leverage risks that come with perpetual contracts.

Galaxy Research reported that crypto futures open interest, including perpetuals, fell 3.08% quarter over quarter to $103.2 billion at the end of Q2 before rebounding to about $114 billion by late July (report). Galaxy described the leverage retraction as smooth. Even so, perpetual contracts can still be risky when funding rates fluctuate, most traders hold the same positions, and prices decline, resulting in liquidations.