CFTC Considers Reintroducing Crypto Perpetual Futures

The US Commodity Futures Trading Commission (CFTC) is taking steps to introduce crypto perpetual futures, a type of derivative that allows continuous trading without an expiry date. According to Michael Selig, chairman of the CFTC, 'bringing true crypto perpetual futures back to the United States is a key task of pro-innovation policy.'

This move aims to draw liquidity from offshore exchanges, such as Binance, back to US markets. Currently, these products are constrained by regulatory issues in the US.

Analysts predict that if regulatory frameworks are refined and derivatives expand within the regulated system, an institution-led market could accelerate. The formation of this market is expected to promote institutional investment in cryptocurrencies.