U.S. just legalized crypto perps trading — long Coinbase as the first-mover winner
The top U.S. derivatives regulator just cleared the way for crypto perpetual futures contracts to trade on American exchanges for the first time. Coinbase and Kalshi are the first platforms approved to offer them, bringing a hugely popular trading product that until now only existed on offshore exchanges.
Idea
Perpetual futures are the most-traded crypto product globally, accounting for the vast majority of crypto trading volume — but until now Americans could only access them through unregulated offshore platforms. Bringing this product onshore to regulated U.S. exchanges like Coinbase is a game-changer that should meaningfully boost Coinbase's trading revenue. This is the kind of structural tailwind that can drive a stock higher over weeks and months, not just days. Coinbase also benefits because traders who previously used offshore exchanges now have a regulated alternative, which should pull volume — and fees — onto Coinbase's platform. The main risk is that Bitcoin ETF outflows have been heavy recently ($2.8B over nine days), so broader crypto sentiment could dampen the near-term upside even if the regulatory news is positive for Coinbase specifically.