Coinbase Expands Trading Options, Introducing Perpetual Contracts for American Customers, Following Kraken's Initiative
Coinbase, a leading cryptocurrency exchange, has launched CFTC-regulated perpetual futures for U.S. traders. This move addresses a long-standing gap in the U.S. crypto markets, as highlighted by Charmaine Tam, head of OTC trading at Hex Trust.
The new offering comes after Kraken's recent launch of its own regulated futures platform, signalling a growing trend towards more secure and compliant alternatives to offshore platforms.
Advantages for U.S. Traders
Perpetual futures bring several advantages to U.S. traders. Unlike traditional futures with monthly or quarterly expirations, these perpetual futures have long-dated expirations (5 years), eliminating the logistical complexity of rolling contracts repeatedly. This provides continuous exposure, a significant advantage for traders looking to capitalise on long-term trends.
Moreover, U.S. traders gain parity with international markets and access to widely used tools, as perpetual futures represent about 90% of global crypto derivatives volume. Leverage of up to 10x is also offered, enabling amplified exposure with smaller capital outlay.
Trading happens within a regulated framework designed for compliance and risk management, increasing safety compared to offshore platforms. Settlements are in U.S. dollars, simplifying accounting and reducing foreign exchange risk. Continuous trading availability enhances flexibility and responsiveness to market moves. Innovative funding rate mechanisms keep perpetual futures prices tethered to spot prices, facilitating price stability and risk balance.
Challenges for U.S. Traders
However, perpetual futures also present typical derivatives risks and emerging market challenges. The high volatility and risk inherent in these instruments are due to leverage and the funding rate mechanism that can cause price swings. As of mid-2025, these offerings are very recent and still evolving; market liquidity and depth may initially be lower than established offshore venues.
The 5-year expiry—long but not truly perpetual—reflects regulatory compromises that may limit some trading strategies familiar to offshore perpetual futures users. The funding rate mechanism operating on hourly accruals and daily settlements might be complex for retail traders new to derivatives. Currently, available contracts are limited to nano Bitcoin and nano Ether, so exposure to broader crypto assets is limited compared to some international markets.
Regulatory Clarity and Institutional Adoption
The launch of Coinbase's perpetual futures coincides with the signing of the GENIUS Act into law by President Trump. This marks America's first major crypto legislation and is seen as a crucial step towards aligning with global market practices. The US regulatory clarity provided by the GENIUS Act is expected to open doors for greater institutional adoption, helping to further shape crypto as a mainstream asset class.
Trading fees for Coinbase's perpetual futures start at 0.02% per contract. The signing of the GENIUS Act and the launch of Coinbase's perpetual futures have been celebrated by crypto's biggest names, including Coinbase CEO Brian Armstrong, who was present at the White House ceremony announcing President Trump's commitment to making the United States the crypto capital of the world.
- U.S. traders can now utilize cryptocurrency trading through CFTC-regulated perpetual futures on Coinbase, addressing a gap in the U.S. crypto markets.
- The new offering eliminates the logistical complexity of rolling contracts repeatedly and offers continuous exposure for traders capitalizing on long-term trends.
- Leverage of up to 10x is offered, enabling traders to gain more exposure with smaller capital outlay, while trades happen within a regulated framework for safety.
- Perpetual futures present derivatives risks and emerging market challenges, such as high volatility due to leverage and funding rate mechanisms, while market liquidity and depth may initially be lower than offshore venues.
- The launch of Coinbase's perpetual futures coincides with the signing of the GENIUS Act into law, marking America's first major crypto legislation and promoting institutional adoption of crypto as a mainstream asset class.
- Coinbase CEO Brian Armstrong celebrated the signing of the GENIUS Act and the launch of Coinbase's perpetual futures, reflecting his commitment to making the United States a major player in the crypto market.
