Crypto Perps: 3 Powerful Forces Behind a Legal Alliance

The growing U.S. market for crypto perpetual futures, commonly called perps, is creating an unexpected alliance between cryptocurrency companies and federal regulators. Several digital asset firms are supporting the Commodity Futures Trading Commission (CFTC) in two separate legal battles challenging its authority to approve perpetual futures. The disputes could determine how these products are classified, regulated and made available to American investors.

Why Crypto Perps Are at the Centre of Legal Disputes

Perpetual futures are derivative contracts that allow traders to speculate on an asset's price without owning it. Unlike traditional futures, they have no fixed expiration date. Instead, periodic funding payments help keep their prices aligned with the underlying market.

Their popularity has grown significantly in global crypto markets. Crypto perpetual futures recorded approximately $61.7 trillion in trading volume during 2025, according to CryptoQuant data cited by Reuters.

However, their expansion into the United States has raised questions about regulatory jurisdiction and investor protection.

Three Powerful Factors Driving the Crypto Perps Alliance

1. Defending regulatory clarity: CME Group is challenging the CFTC's approval of Bitcoin perpetual futures, arguing that the contracts should be classified as swaps rather than futures. Crypto industry advocates are backing the regulator's position.

2. Protecting access to equity perps: A separate lawsuit from the Capital Markets Alliance challenges the CFTC's approval of single-stock perpetual futures. Coinbase, Kalshi, Payward, DRW Holdings, Jump Trading and Paradigm have sought to support the regulator through a court brief.

3. Keeping innovation in the United States: Crypto companies argue that a clear regulatory framework could encourage domestic trading, investment and product development instead of leaving these markets concentrated offshore.

The legal outcomes could influence exchange competition, institutional participation and access to leveraged derivatives. Clearer rules may support market development, although leverage and liquidation risks remain significant.

Court decisions will help establish whether the CFTC can maintain its approach to crypto and equity perpetual futures. The SEC-CFTC regulatory relationship will also remain important.

The alliance reflects a broader shift in crypto's relationship with U.S. regulators. Rather than seeking to operate outside traditional financial structures, crypto firms increasingly want established regulatory frameworks that allow innovation to compete onshore.