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CFTC Approves US Bitcoin Perps, with a Catch

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The CFTC has approved KalshiEX LLC's Bitcoin perpetual futures contract (BTCPERP) as a futures product, marking a significant step in bringing crypto perpetuals under US regulation. Simultaneously, Coinbase Financial Markets received staff-level relief to access certain Deribit products. This dual action shifts Bitcoin perps from offshore liquidity debates to a US-regulated test case. However, the approval includes a critical catch: Kalshi's contract must comply with traditional futures market rules, including position limits and real-time reporting, which could stifle the leverage and flexibility that made perps popular offshore. The outcome may set a precedent for how US regulators treat these products, potentially curbing innovation or paving the way for mainstream adoption. Market participants are watching closely as this could redefine the landscape for Bitcoin derivatives.

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