U.S.
CFTC opens crypto ‘perp’ door with first approval at regulated firm The Commodity Futures Trading Commission has now established a stance on how regulated U.S. firms can engage in crypto perpetual futures contracts
What to know: – The U.S. Commodity Futures Trading Commission has given approval for bitcoin perpetual futures contracts on a regulated exchange, marking a first for U.S. perps. – The derivatives regulator has now set a standard for firms to approach such contracts, which CFTC Chairman Mike Selig called a “major step forward” in adopting policies to boost the U.S. crypto space. U.S. crypto firms can offer perpetual futures contracts, or “perps,” without running afoul of the U.S.
Commodity Futures Trading Commission, according to the agency’s first approval of an unnamed exchange to list and trade bitcoin perpetuals, the regulator said on Friday. The perp is a kind of derivative that allows the investor to speculate on future price movements in a crypto asset without putting an expiration date on that contract, allowing it to be held as long as the investor wants. With this first approval on a registered platform, the U.S. derivatives regulator with a long history overseeing traditional crypto futures now opens a U.S. path for the potentially lucrative and popular arena of crypto perps that have previously been pursued more in non-U.S. jurisdictions.