The crypto industry is highlighting the necessity for clear regulation of perpetual contracts in the U.S. This stems from current legal ambiguity that hinders innovation and places American platforms at a disadvantage globally.
Need for Regulation of Perpetual Contracts
The crypto industry is urging the Commodity Futures Trading Commission (CFTC) to establish clear rules for perpetual contracts. Industry participants argue that the current legal ambiguity stifles innovation and makes U.S.-based platforms less competitive in the international arena.
Coinbase's Reform Initiatives
Coinbase, the largest U.S.-based crypto exchange, is advocating for reforms. It has already secured CFTC approval for Coinbase Derivatives LLC and plans to launch 24/7 trading for Bitcoin and Ethereum futures. However, full-fledged perpetual trading remains constrained by regulatory ambiguity.
Threats to U.S. Global Position
Globally, firms like Binance and OKX are taking charge of the perpetual contracts market, providing traders with high-leverage products. Crypto leaders warn that without updated regulations, the U.S. risks falling behind in derivatives innovation.
Implementing clear rules for perpetual futures could help restore the U.S. to a leading position in the digital finance arena, increasing investor safety and attracting institutional capital.
