US regulatory shift brings equity perps onshore
The guest argued that joint CFTC and SEC collaboration will establish a compliant US framework for equity and pre-IPO perpetual contracts, bringing massive offshore trading volumes onshore.
The argument
Historically, turf battles between the CFTC and SEC sidelined hybrid instruments, but the current regulatory stance is actively working to greenlight security futures and equity perps. This shift aims to prevent US retail investors from using VPNs to access offshore platforms without protections, benefiting compliant US platforms.
The thesis, stress-tested
✓ What validates it
- ✓SEC and CFTC release a joint regulatory framework for security perpetuals
- ✓First US-regulated pre-IPO equity perp goes live on a domestic exchange
▸ Risks discussed
- ▸Regulatory turf wars could stall joint SEC-CFTC approvals
- ▸Strict compliance costs for disruptors
- ▸Potential manipulation risks in underlying spot markets
Hear it yourself
"At the same time, the CFTC also gave Coinbase a no action letter, allowing them to pipe their customers to Derabit, in order to access futures, options, and perps on Coinbase access through Derabit. Pretty landmark approval. Mike, are we about to see more of these? Is the CFTC opening up the gate for onshore perps? What can we expect as an industry or people who are just interested in the perpetual future instrument? Well, thanks for having me on the show. And, you know, this is really, as you say, a watershed moment, a pivotal moment, where we've turned the"
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