How the Crypto Industry Is Responding to the CFTC’s Call on Perpetuals

Crypto Industry Leaders Advocate for Perpetual Futures Regulation in the U.S.

Major cryptocurrency companies are pushing for regulatory approval of crypto perpetual futures contracts, claiming these instruments could transform derivatives trading in the U.S. if properly overseen. First conceptualized by Nobel Prize-winning economist Robert Shiller in 1992, perpetual futures now dominate crypto derivatives markets, representing an estimated 93% of all trading volume.

The Commodity Futures Trading Commission (CFTC) is currently evaluating whether existing regulations adequately cover perpetual derivatives or if new rules are needed to address their risks. This review comes as these instruments experience rapid adoption in crypto markets and show potential for expansion into traditional asset classes.

Industry heavyweights including Coinbase, OKX, Paradigm, and Hyperliquid have responded to the CFTC's request for input, emphasizing perpetuals' dominance in crypto derivatives. Their message is clear: perpetual futures represent crypto's most impactful financial innovation, and proper U.S. regulation could unlock access to a thriving multi-trillion dollar market currently operating primarily overseas.

Advocates point to several advantages of perpetual futures, including:

• Simplified accessibility for traders
• Enhanced transparency through decentralized protocols
• Superior liquidity compared to traditional futures contracts

They've recommended the CFTC consider forming a specialized advisory committee to examine decentralized finance (DeFi) perpetuals and embrace decentralized trading protocols.

Outgoing CFTC Commissioner Summer Mersinger, who recently announced her move to become CEO of the Blockchain Association, indicated the agency plans to have crypto perpetuals "trading live very soon," signaling potential regulatory progress in this area.