Perpetual Contracts Face Regulatory Scrutiny in EU and US

The regulatory landscape for crypto derivatives is shifting as two major jurisdictions take opposing stances on perpetual contracts. The European Securities and Markets Authority (ESMA) has issued a warning that derivatives marketed as 'perpetual futures' or 'perpetual contracts' tied to Bitcoin and Ethereum likely fall within the scope of contracts-for-difference regulations, regardless of their commercial name. This move aims to tighten regulations in Europe.

On the other hand, the US Commodity Futures Trading Commission (CFTC) is seeking to onboard perpetual contracts with appropriate safeguards. Chairman Michael Selig has announced that his agency will use its tools to 'onshore' perpetual and other novel derivative products with suitable precautions. This approach treats perpetuals as widely used tools requiring common-sense safeguards.

The stakes are enormous, with perpetual contracts accounting for 60-90% of the $85.70 trillion centralized crypto derivatives market recorded in 2025. The jurisdiction that balances leverage access with clearing credibility will host the next cycle's derivatives machine. A shift of just 5-10% of global perpetual turnover to US-regulated venues could generate $514 million-$1.37 billion in gross trading fees.