The CFTC has approved live Bitcoin perpetual contracts for US exchanges, but crypto project founders remain unable to raise funds publicly as the SEC's token fundraising rules remain only a proposal
The US cryptocurrency market is experiencing a regulatory split: while trading firms can now access live, regulated Bitcoin perpetual contracts, crypto project founders remain blocked from raising funds through public token sales. The Commodity Futures Trading Commission (CFTC) has approved true Bitcoin perpetuals for US exchanges, but the Securities and Exchange Commission (SEC) has yet to finalize a framework that would allow token issuers to legally raise capital from the public. This unusual sequencing means that sophisticated trading products are available before new token fundraising routes are open to US-based projects.
Perpetuals Arrive Before Fundraising Rules
On May 29, the CFTC approved a Bitcoin perpetual contract for Kalshi, marking the first time a US-regulated exchange could offer a crypto derivative with no expiry date. Bitnomial soon followed with its own live perpetuals. These contracts allow traders to maintain leveraged positions without rolling over to new contracts, a structure that has long been popular on offshore crypto exchanges. In contrast, the SEC's Regulation Crypto Assets, which would create a legal path for token fundraising, remains at the proposal stage and is not yet available for use by issuers. The result is a market where trading and hedging of established assets is regulated and live, but the creation and public sale of new tokens is still in regulatory limbo.
Market Impact and Regulatory Timelines
Bitcoin's price climbed to around $77,000 on August 21, up 22% over the previous week, according to CoinGlass. The same period saw $154.6 billion in 24-hour Bitcoin futures volume and $56.2 billion in open interest, with $840 million in Bitcoin futures liquidations recorded in the latest window. These figures reflect the scale of leveraged trading activity, especially as US-regulated perpetuals begin to compete with offshore venues. The CFTC's approval process requires each exchange to file individually and meet strict requirements for margin, surveillance, and customer protection. Meanwhile, the SEC's proposal for token fundraising entered the Federal Register on August 21, with public comments due by October 20 and a final vote still pending.
Comparing Regulatory Approaches
The CFTC's ability to fit perpetual contracts into its existing derivatives framework has allowed trading products to launch quickly. Kalshi's BTCPERP was approved under Regulation 40.3, which lets the commission review new contracts for compliance with designated contract market rules. The CFTC also issued a policy statement clarifying how its core principles apply to perpetuals, but each product still requires individual approval. In contrast, the SEC's approach to token fundraising involves a broader set of issues, including disclosure requirements, fundraising limits, financial statements, resale conditions, and the separation of tokens from investment contracts. The SEC's proposal would introduce a $5 million startup exemption, $20 million and $75 million public tiers, and a safe harbor for tokens to exit securities status, but none of these provisions are yet in effect.
Broader Market Consequences
This regulatory gap has practical consequences for US crypto projects and investors. Regulated institutions can now take leveraged Bitcoin positions on domestic exchanges, while founders seeking to launch new tokens with public participation must rely on private placements, offshore structures, or wait for the SEC to finalize its rules. The CFTC is also exploring whether perpetual contracts could be used in other markets, such as energy derivatives, with a comment period open through August 26. For now, the US market is better equipped to trade and hedge existing crypto assets than to support the legal creation and public sale of new ones. This dynamic echoes recent market events, such as the rapid move toward $70,000 Bitcoin following US Treasury buyback plans, which triggered significant liquidations and highlighted the influence of derivatives on price action, as discussed in EgonCoin's coverage of Bitcoin's $69K level and Treasury buybacks.
As of August 21, 2026, US-regulated exchanges like Kalshi and Bitnomial offer live Bitcoin perpetual contracts, with leverage up to six times posted collateral. CoinGlass data shows $154.6 billion in 24-hour Bitcoin futures volume and $56.2 billion in open interest, while $840 million in Bitcoin futures liquidations occurred in the latest rolling window. The SEC's Regulation Crypto Assets proposal remains open for public comment until October 20, with no active legal route for public token fundraising in the US.
Perpetual contracts differ from standard futures by having no expiration date, allowing traders to maintain positions indefinitely as long as they meet margin requirements. This design, popularized by offshore crypto exchanges, provides continuous exposure and efficient capital use but also introduces unique risks. The CFTC's case-by-case approach to approving perpetuals ensures that each product meets regulatory standards for margin, surveillance, and customer protection, but does not guarantee approval for every asset or contract type. For token fundraising, the SEC's broader regulatory mandate means that new rules must address a wide range of legal, disclosure, and investor-protection issues before public token sales can proceed under US law.
