Crypto Perps Take Off in the U.S.: A New Era for Retail and Institutional Trading

Introduction

As cryptocurrency markets mature, perpetual futures—commonly known as “perps”—are emerging as a powerful trading tool in the United States, blending high-leverage opportunities with 24/7 accessibility. Coinbase’s announcement on June 13, 2025, to launch CFTC-compliant perpetual futures marks a pivotal moment, opening the door for both retail and institutional traders to engage in this dynamic market. With global exchanges like Binance dominating perp trading, this article explores the U.S.’s growing embrace of these derivatives, their appeal to traders, and the regulatory and competitive challenges shaping their rise as of June 21, 2025.

Coinbase’s Bold Entry into Perps

Coinbase, the leading U.S. crypto exchange, is set to roll out perpetual futures trading in late 2025, following its March launch of 24/7 futures trading. Announced by Vice President of Product Max Branzburg at the New York State of Crypto Summit, these CFTC-compliant perps will allow traders to speculate on assets like Bitcoin (BTC) and Ethereum (ETH) without expiration dates, using leverage up to 100x. Unlike traditional futures, perps’ funding rate mechanism balances long and short positions, making them ideal for volatile markets. This move positions Coinbase to capture a slice of the $1.7 trillion monthly futures trading volume led by global giants like Binance, as reported in May 2025.

Retail Traders Drive Demand

Perpetual futures are particularly appealing to U.S. retail traders, who seek high returns in a market where Bitcoin trades around $104,000 and Ethereum at $2,550. The ability to trade with leverage amplifies potential gains, drawing in younger investors active on platforms like X, where users like @cryptofy01 praise perps for their “non-stop trading action.” However, Tony Kang, a crypto trader, warns that retail traders often lack margin and risk management skills, risking significant losses. The $96 billion in open interest for BTC futures, per CryptoQuant, underscores the scale of leverage, with a single 4% BTC drop on June 17, 2025, triggering $171 million in liquidations, highlighting the high-stakes nature of perps.

Regulatory Tailwinds and Challenges

The U.S. regulatory landscape is shifting in favor of crypto derivatives, spurred by a pro-crypto stance under President Trump. CFTC Commissioner Summer Mersinger confirmed in May 2025 that perpetual futures are permissible, a departure from earlier crackdowns on exchanges like Kraken for offering similar products. The Senate’s passage of the GENIUS Act on June 17, 2025, with a 68-30 vote, further bolsters confidence by regulating stablecoins, which often underpin perp trading pairs like BTC-USDT. However, past enforcement actions against Binance and KuCoin for non-compliant derivatives suggest ongoing scrutiny, requiring Coinbase to navigate strict compliance to avoid penalties.

Global Competition and Market Dynamics

While Coinbase leads the U.S. charge, global exchanges like Binance, Bybit, and OKX dominate perp trading, with Binance alone handling $1.7 trillion in May 2025. The U.S. market lags due to regulatory constraints, but competitors like Bitnomial, which launched XRP futures in March, are closing the gap. Posts on X suggest Coinbase’s entry could lower fees and boost liquidity, pressuring global rivals. Meanwhile, macroeconomic factors, such as potential Fed rate cuts in July and geopolitical tensions like the Iran-Israel conflict, add volatility, making perps a double-edged sword for traders seeking to capitalize on price swings.

Conclusion

The surge of crypto perpetual futures in the U.S., led by Coinbase’s CFTC-compliant launch, signals a new chapter for crypto trading, blending retail enthusiasm with institutional rigor. With $96 billion in open interest and a supportive regulatory environment, perps offer unmatched flexibility for traders. However, their high leverage and volatility pose significant risks, particularly for retail investors. As the U.S. competes with global exchanges and navigates macroeconomic uncertainties, the success of perps will hinge on balancing innovation with robust risk management, paving the way for a more dynamic and accessible crypto market in 2025.