Coinbase to Offer Perpetual Futures Amid CFTC Shift

- Coinbase to introduce US crypto perpetual futures. - CFTC reconsiders stance on these products. On June 20, 2025, Cointelegraph reported that Coinbase is preparing to launch crypto perpetual futures in the United States. This development coincides with the Commodity Futures Trading Commission (CFTC) re-evaluating its stance on these high-risk financial products. Cryptocurrency perpetual futures, known as "perps," allow traders to speculate on cryptocurrency prices. These instruments provide high leverage and have no expiration date, features that raise concerns about significant risk to retail traders who face potential quick liquidation of their positions if prices drop below maintenance margins. Coinbase's move also coincides with regulatory changes at the CFTC, which in 2023 issued an advisory note. This note highlighted increased scrutiny for firms offering derivatives like perps and also emphasized safeguards and conflict-of-interest concerns. However, the regulatory landscape has since shifted; for instance, under the Trump administration, the CFTC adopted a more open stance towards perpetual swaps. In March 2025, the CFTC withdrew its previous advisory note to ensure consistent treatment of digital asset derivatives and subsequently invited public comments on perpetual contracts. Fenni Kang, chief strategy officer of Coincall, warned that perps can be like a “ticking time bomb” for inexperienced traders because of the high leverage involved. Despite these concerns, regulatory moves indicate a growing acceptance of these instruments. For instance, Bitnomial, a CFTC-regulated market maker, self-certified a legal perpetual futures contract after working with CFTC staff for over a year on methodology and pricing. Moreover, Acting Chair Caroline Pham confirmed that perps have been live on Bitnomial. On June 13, 2025, Max Branzburg, Head of Consumer Products at Coinbase, announced the company's plans to launch CFTC-compliant perps for U.S. customers. Separately, on June 10, 2025, Greg Tusar, Coinbase's Vice President for Product Management, speaking at a Morgan Stanley conference, mentioned that Coinbase has been engaging with the CFTC on a product designed to have no expiry date, and added that the company is nearing an announcement for an implementation date. The perpetual derivatives market forms a substantial part of the crypto market. For example, as of June 20, open interest in these perpetuals reached $704 billion. Consequently, analysts suggest that active retail traders will drive demand for these products in the U.S. According to CoinMarketCap, as of June 20, at 16:18 UTC, Bitcoin (BTC) was trading at $104,058.043, with its 24-hour trading volume showing a 0.34% decrease. Meanwhile, Ethereum (ETH) was trading at $2,483.596, its 24-hour trading volume indicating a 0.762% decrease.