CFTC Lets Coinbase Turn 25-Year Index Futures Into Contracts That Never Expire

The Commodity Futures Trading Commission's Division of Market Oversight has issued no-action relief that allows US futures exchanges to remove expiration dates from perpetual-style stock index futures, a change that converts the long-dated contracts listed by Coinbase Derivatives — some carrying expiries of up to 25 years — into true perpetuals. The letter, dated Monday, responds to a request Coinbase filed on October 1 and applies to any designated contract market, though only for futures on broad-based security indices such as the S&P 500.

Perpetual futures substitute periodic funding payments for an expiry date, keeping the contract price tethered to the underlying asset. The division noted that the market for such products has largely developed on offshore venues. Kraken has put annual crypto perpetuals volume above $60 trillion for 2025, and the exchange launched CFTC-regulated perpetuals on Kraken Pro in June. According to the letter, Coinbase opted for its long-dated structure because of regulatory uncertainty in the US over how perpetuals should be classified.

Kalshi's Approval Set the Precedent

The relief follows a separate KalshiEX filing. KalshiEX, which began expanding into perpetual futures in April, asked the CFTC on August 18 to review a broad-based stock index perpetual; that contract was deemed approved on October 2, a day after Coinbase submitted its own request. The division treats that determination as confirmation that such contracts are futures. The sequence began on May 29, when the CFTC cleared bitcoin perpetuals and issued a policy statement requiring perpetuals on other assets to undergo full Commission review, later seeking public input on whether the structure suits crude oil.

Because several existing contracts carry open interest, the letter sets conditions. Before converting a contract, an exchange must consult holders of open positions about potential harm, provide at least five calendar days' notice, allow traders to close out under the old terms, and supply risk disclosures. Nothing other than the expiry date may be changed. Staff observed that altering so material a term can shift prices and said the effect on price discovery and hedging "may be impossible to anticipate."

In exchange, the division will not recommend enforcement for making amendments immediately effective, removing the standard 10-business-day wait for self-certified rule changes under Regulation 40.6, and will not seek a stay, which would add 90 days of review plus a 30-day comment period. Exchanges must still file under Regulation 40.6(a) or 40.5, identify the contracts involved and certify compliance. The relief lapses on October 20.

The letter does not extend to single-stock or ETF perpetuals. Coinbase, Kalshi and Kraken parent Payward filed for those products in September, and they remained pending. CME Group took the dated route, launching 77 single-stock futures in July that require periodic rollovers. Staff cautioned that even with identical funding mechanics, existing contracts may price differently from a true perpetual, and the relief binds only the Division of Market Oversight, which retained the right to modify or withdraw it.