CFTC Chair Draws a Line on Perpetual Trading — Here's What That Means for Crypto Markets
(101 days ago) · 1 source · Summarized by CryptoBipto
The CFTC chair has stated that perpetual futures trading is not appropriate for every asset class the agency oversees. The comments come amid growing interest in bringing crypto-native trading products like perpetual swaps into regulated U.S. markets, alongside the agency's expanding role in crypto and prediction markets.
WHY IT MATTERS
Perpetual futures (or 'perps') are a type of trading contract that lets you bet on the price of an asset going up or down without ever having to actually buy or sell the asset itself — and unlike regular futures, they never expire. Think of it like placing an ongoing bet at a sportsbook that stays open indefinitely. These are wildly popular on crypto exchanges outside the U.S. but have been mostly off-limits to American traders because regulators haven't approved them. The CFTC — the agency that oversees commodities trading in the U.S. — is now saying these products might work for some assets (like crypto) but not others (like wheat or corn). This matters because if the CFTC greenlights perps for crypto, it could bring a massive wave of new trading activity to regulated U.S. platforms, making it easier and safer for everyday investors to access these products.
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