A crypto trading startup called Lighter is betting that a zero-fee model and regulatory approval can unlock a market that's been largely ignored: US onshore perpetual futures. The company argues that the perpetual contracts market — worth trillions globally — is almost entirely offshore, and that bringing it onshore with a fee-free structure could attract billions in new volume. Lighter's pitch hinges on two things: getting the green light from US regulators, and proving its engineering team can build a platform that rivals top AI startups.
A zero-fee approach to perpetuals
Perpetual futures, or 'perps,' are the most traded crypto derivative product, but nearly all of that activity happens through exchanges based outside the US, like Binance and Bybit. Lighter's zero-fee model is a direct challenge to those incumbents, which typically charge maker-taker fees of 0.01% to 0.06% per trade. By eliminating fees entirely, Lighter hopes to draw liquidity and traders who are currently priced out or frustrated by hidden costs. The company believes that the US onshore perpetual market is essentially untapped — no major exchange has yet offered a zero-fee perp product within US borders.
Regulatory path to billions
That untapped status isn't accidental. Crypto derivatives are tightly regulated in the US by the Commodity Futures Trading Commission, and most perp products have been deemed illegal for US customers. Lighter is seeking approval to operate as a designated contract market or swap execution facility, which would allow it to offer perpetuals legally. The company argues that if regulators approve, the onshore market could be worth billions in annual trading volume. But the CFTC has been cautious; recent enforcement actions against offshore exchanges show the agency is watching. Lighter's application is still pending, and the outcome is uncertain.
Engineering pedigree
Beyond the regulatory fight, Lighter is leaning hard on its technical talent. The company says its engineering team is comparable to that of top AI startups — a nod to the fact that building a low-latency, high-volume perpetual exchange is as much a software challenge as a financial one. The team has built its own matching engine and risk management system from scratch, designed to handle the throughput of a top-tier exchange while keeping costs near zero. Lighter isn't disclosing specific names of engineers, but the startup has attracted attention from crypto and fintech investors who see the potential in a fee-free onshore product.
Whether that potential becomes reality depends on one thing: the CFTC's decision. Lighter's application is under review, and the company has not disclosed a timeline. Until then, the US onshore perpetual market remains a blank slate — and Lighter is waiting for permission to write on it.
