News · October 06, 2026, 06:04 UTC · Verified against the sources listed below.
The Commodity Futures Trading Commission’s Division of Market Oversight issued a no-action letter on October 5, 2026, allowing designated contract markets to convert their existing perpetual-style broad-based security index futures into true perpetual futures. The relief, announced in CFTC Release Number 9308-26, permits DCMs to remove expiration dates from qualifying contracts once they satisfy specified customer protection and procedural conditions.
The action follows a request from Coinbase Derivatives, a CFTC-registered DCM, which on October 1, 2026, sought permission to make the changes without waiting through the standard 10-business-day process under agency rules, according to The Crypto Times. The relief is available to Coinbase Derivatives and other DCMs that meet the conditions outlined in the letter.
What happened
Under the no-action letter, DCMs may strip expiration dates from their existing broad-based security index futures perpetual-style contracts and implement the amendments effective upon satisfaction of certain conditions. These include soliciting feedback from market participants with open positions, providing advance notice and an opportunity to exit positions, offering appropriate risk disclosures, and ensuring that no other material contract terms are modified.
DCMs must also file the amendments under CFTC Regulations 40.5 or 40.6 and certify compliance with all conditions. The no-action positions in the letter expire on October 20, 2026, according to the CFTC release.
The relief applies specifically to perpetual-style futures referencing broad-based security indexes and does not extend to perpetual-style contracts referencing other types of assets, The Crypto Times reported. The CFTC said the relief is available to Coinbase Derivatives and other DCMs that meet the conditions.
The action follows the CFTC’s recent determination that perpetual futures can qualify as futures contracts under the Commodity Exchange Act. In May 2026, the agency issued an order concerning perpetual futures linked to bitcoin and other digital commodities with deep, active, and continuous spot markets. In June, the CFTC said perpetual contracts referencing assets outside the scope of that order should undergo CFTC review under Regulation 40.3.
Separately, on October 5, 2026, the CFTC issued an advance notice of proposed rulemaking seeking public input on a potential federal framework for leveraged retail crypto trading. The notice asks how Section 2(c)(2)(D) of the Commodity Exchange Act should apply to crypto asset transactions and proposes frameworks known as Regulation CTX and Regulation CAM. The CTX framework would cover certain leveraged retail crypto transactions, while CAM would create a tailored designated contract market category for exchanges offering those products. CFTC Chairman Michael Selig has linked the initiative to the agency’s broader effort to establish a federal crypto market structure using existing authorities.
Analysis: Why it matters for investors
The no-action letter could reduce the operational awkwardness of perpetual-style contracts that carried distant expiration dates, some running as far as 25 years out, according to Crypto Briefing. By allowing DCMs to remove expiration dates, the relief may make it easier for traders to reason about these products, as a perpetual without any expiration date is simpler than one with a far-off date that exists mainly for regulatory reasons.
The relief could also affect competition among exchanges. Because eligibility is conditioned on customer protection and procedural requirements, the first wave of conversions may cluster around established products. The letter aligns US-regulated markets with recent CFTC decisions on how perpetual futures for digital commodities should be treated, including the approval of KalshiEX LLC’s BTCPERP contract, Crypto Briefing reported.
However, the relief is conditional and temporary. The no-action positions expire on October 20, 2026, giving DCMs a short window to act. The CFTC’s separate advance notice of proposed rulemaking on leveraged retail crypto trading is an advance proposal, not a final rule, and the agency is seeking industry feedback before deciding whether and how to proceed.
Who is affected
Designated contract markets that list perpetual-style broad-based security index futures are directly affected. Coinbase Derivatives requested relief on October 1, 2026, and Bitnomial Exchange, LLC also requested relief covering 16 contracts, while Coinbase Derivatives asked for relief covering 22 contracts, according to Crypto Briefing.
Market participants with open positions in these contracts are affected because DCMs must solicit their feedback, provide advance notice, and offer an opportunity to exit positions before implementing amendments. Traders in US-regulated crypto derivatives may see changes in product structure if exchanges convert qualifying contracts.
The relief does not extend to perpetual-style contracts referencing other types of assets, so venues listing products tied to assets outside the broad-based security index category are not covered by this letter.
What is still uncertain
The sources do not say which specific DCMs will convert contracts or the exact timing of any conversions beyond the October 20, 2026 expiration of the no-action positions. It is also unclear how the CFTC’s separate advance notice of proposed rulemaking on leveraged retail crypto trading will interact with the perpetual futures relief, or whether the agency will extend or modify the relief after it expires.
Conclusion: What to watch next
Market participants should watch whether DCMs file amendments under CFTC Regulations 40.5 or 40.6 and certify compliance before the October 20, 2026 expiration of the no-action positions. The CFTC’s request for public input on a potential federal framework for leveraged retail crypto trading, including Regulation CTX and Regulation CAM, is also a key development to monitor. How exchanges adapt to these changes, and whether the relief is extended, will shape the availability of perpetual futures in US markets.
Sources
- cftc.gov: CFTC Issues No-Action Letter for DCMs Regarding Converting Existing Perpetual-Style Broad-Based Security Index Futures into True Perpetual Futures | CFTC (published 2026-10-05)
- Coinfomania: US CFTC Announces New No-Action Letter for Perpetual Futures (published 2026-10-06)
- Crypto Briefing: CFTC no-action letter lets exchanges turn crypto futures into true perpetuals (published 2026-10-05)
- The Crypto Times: CFTC Opens Door to More Perpetual Futures in U.S. Crypto Markets (published 2026-10-06)
Sources accessed on October 06, 2026. Figures as reported by the sources above.
Frequently Asked Questions
What did the CFTC's no-action letter allow?
The CFTC's Division of Market Oversight issued no-action relief allowing designated contract markets to convert their existing perpetual-style broad-based security index futures into true perpetual futures by removing expiration dates. The relief is conditioned on customer protection and procedural requirements, including soliciting feedback from market participants with open positions and providing advance notice.
When does the no-action relief expire?
According to the CFTC release, the no-action positions in the letter expire on October 20, 2026. DCMs must file amendments under CFTC Regulations 40.5 or 40.6 and certify compliance with all conditions.
Which contracts are covered by the relief?
The relief applies specifically to perpetual-style futures referencing broad-based security indexes. It does not extend to perpetual-style contracts referencing other types of assets, according to The Crypto Times.
Which exchanges requested the relief?
Coinbase Derivatives requested relief on October 1, 2026, seeking permission to make the changes without waiting through the standard 10-business-day process. Bitnomial Exchange, LLC also requested relief covering 16 contracts, while Coinbase Derivatives asked for relief covering 22 contracts, according to Crypto Briefing.
What other CFTC action was announced on October 5, 2026?
The CFTC issued an advance notice of proposed rulemaking seeking public input on a potential federal framework for leveraged retail crypto trading. The notice proposes frameworks known as Regulation CTX and Regulation CAM, and CFTC Chairman Michael Selig has linked the initiative to the agency's broader effort to establish a federal crypto market structure.
AI Notice: This article was created wholly or predominantly with the assistance of artificial intelligence and was published without human editorial review.
This article is for general information only and does not constitute investment advice. Always do your own research before making trading decisions.