US Regulators Eye Onshore Crypto Perpetual Contracts
US Regulators Consider Onshore Trading of Crypto Perpetual Contracts
The US Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are evaluating steps to permit perpetual contracts to be traded on US platforms. This initiative is part of an ongoing effort to harmonize regulatory oversight and bring crypto-style products onshore.
The agencies announced a joint roundtable on regulatory harmonization scheduled for September 29. The focus will be on incentivizing novel products to return to US markets, addressing the regulatory ambiguity that has driven financial innovation overseas.
“It is a new day at the SEC and the CFTC, and today we begin a long-awaited journey to provide markets the clarity they deserve,” stated SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham jointly. “By working in lockstep, our two agencies can harness our nation’s unique regulatory structure into a source of strength for market participants, investors and all Americans.”
Key Focus Areas
- Expanded Trading Hours: Addressing the demand for extended trading hours in specific markets.
- Prediction Markets Clarity: Providing clearer guidelines for prediction markets and event contracts.
- Perpetual Contracts Onshoring: Developing regulatory frameworks to bring perpetual contracts onshore.
The agencies are also considering portfolio margining to reduce capital inefficiencies and exploring innovation exemptions for decentralized finance (DeFi) protocols.
Regulators highlighted their openness to establishing safe harbors. These would allow peer-to-peer trading of spot crypto assets and derivatives over DeFi protocols, while maintaining essential investor protections.
“The right to self-custody one’s assets is a core American value,” the statement noted, emphasizing that existing paths allow spot crypto trading on federally regulated venues, but opportunities should remain open for peer-to-peer spot crypto trading.
On Tuesday, the SEC and CFTC released guidance that enables US-registered exchanges to offer spot trading of specific crypto tokens. This move signals broader regulatory measures designed to position the US as a potential hub for crypto market activities. For projects looking to navigate the evolving regulatory landscape, platforms like Codeum offer consulting services to ensure compliance and security during token launches.