Onshore crypto perps get CFTC greenlight
The CFTC's classification of perpetual Bitcoin contracts as futures rather than swaps paves the way for regulated, retail-accessible onshore crypto derivatives trading.
The argument
The hosts argued that this regulatory shift allows US retail investors to trade true perpetual contracts without expiration, which was previously restricted under complex swap rules. While this could drive significant trading volume to regulated US entities like Coinbase, it may challenge offshore decentralized platforms by removing their regulatory arbitrage advantage.
The thesis, stress-tested
✓ What validates it
- ✓Coinbase or other US platforms launching true perpetual futures contracts for retail
- ✓CFTC issuing broader guidance extending perpetual futures status to other crypto assets like Ethereum
▸ Risks discussed
- ▸The CFTC's approval is case-by-case and limited to highly liquid crypto assets like Bitcoin
- ▸Onshore leverage limits may prevent US platforms from matching offshore volumes
- ▸DCMs face high compliance burdens to self-police these complex instruments
Hear it yourself
"I love how it's all relative to a slow news week in crypto means, actually, there's thousands of things happening every day all around the world, but but nothing earth shattering, like no new law or no new lawsuit. I mean, TBD, knock on wood. Yes. So much to talk about. We are gonna dive right in with something very big that happened, in my personal area of fun commodities with the CFTC. One of the things I love about this pod is I have been de facto our CFTC commodities person. Jesse, you are our DOJ person and s e and Vi is our SEC person. So this is a this is a perfect makeup for the full regulatory sphere in The United States."
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