US Set for Clearer Crypto Perpetual Futures Regulations

The US Commodity Futures Trading Commission (CFTC) is gearing up to introduce rules for crypto perpetual futures contracts. In a recent panel discussion at the Milken Institute in Washington, DC, CFTC Chair Michael Selig hinted that a regulatory framework would be established within the next month or so.

According to Selig, the new framework will define how these contracts are structured and what registration standards firms must meet. The move aims to provide clarity for domestic market participants and help them navigate the complexities of perpetual futures trading.

Perpetual futures are a type of derivative that allows traders to bet on crypto prices without an expiry date. They have become increasingly popular globally, but have lacked a clear regulatory home in the US until now.

The CFTC's efforts come as the Digital Asset Market Clarity Act remains stalled in negotiations between Congress, industry, and the White House. This bill aims to divide regulatory responsibilities between the SEC and CFTC, but its progress has been slow due to concerns over legal certainty from Congress.