CFTC Promotes Onshore Trading of Crypto Perpetual Futures

The Commodity Futures Trading Commission (CFTC) has called for public input to regulate crypto perpetual futures contracts in the US, aiming to shift trading onshore.

This move may reshape the US cryptocurrency market, affecting liquidity, prices, and regulatory practices, while exchanges prepare for potential transformative changes.

Regulatory Feedback Sought for Crypto Perpetuals

The CFTC seeks feedback on regulatory frameworks for crypto perpetual contracts, reflecting growing interest among exchanges. The initiative could potentially enable exchanges like Binance to enter the US market.

Outgoing Commissioner Summer Mersinger announced the CFTC’s review of exchange applications to offer these products. Major exchanges are monitoring regulatory changes and preparing for US market entry.

$100B Daily Trading Volume Could Shift Onshore

Potential shift of $100B in daily trading volume onshore is anticipated. Institutional players and exchanges may see new opportunities in US markets if perpetual contracts are approved.

The regulation could boost liquidity and increase compliance demands for market participants. Developer communities express cautious optimism about compliant perpetual products.

“We’re seeing some applications, and I believe we’ll see some of those products trading live very soon. It would be great to get that trading back onshore in the United States.”
— Summer Mersinger, Outgoing CFTC Commissioner

Bitcoin Futures 2017: Historical Lessons for Today

The introduction of Bitcoin futures in 2017 by the CFTC similarly legitimized crypto derivatives trading in the US. Institutional activity surged following regulatory approval.

Future outcomes could include increased market legitimacy and trading activity, reflecting the shifts seen post-Bitcoin ETF approvals. Exchanges prepare for regulatory adjustments.

Disclaimer: The information on this website is for informational purposes only and does not constitute financial or investment advice. Cryptocurrency markets are volatile, and investing involves risk. Always do your own research and consult a financial advisor.