Former Regulators Call for Pragmatic Rules to Bring Perps Onshore
Ex-SEC and CFTC officials have urged policymakers to adopt balanced oversight to capture the $90 trillion offshore crypto derivatives market.
Former regulatory officials from the SEC and CFTC have called for a more flexible, risk-tailored approach to supervising digital asset derivatives. Speaking as congressional legislation remains paused, the experts cautioned that overly rigid rules will continue driving trading volume to offshore, unregulated venues.
The global crypto perpetual futures market currently commands tens of trillions in annualized volume, yet remains largely inaccessible to domestic venues due to restrictive registration hurdles. Pragmatic frameworks would enable compliant domestic platforms to service institutional demand.
Creating transparent onshore pathways for perpetual contracts is viewed as vital for U.S. market competitiveness. Industry leaders argue that balanced oversight would protect retail users while keeping liquidity and technical innovation within domestic borders.
Key takeaways
- Former SEC and CFTC officials urged balanced rules for crypto perpetual futures.
- Overly strict requirements risk keeping a massive derivatives market situated offshore.
- Advocates argue pragmatic oversight would bolster domestic liquidity and consumer protection.