The CFTC has invited public input on the future of perpetual futures contracts, fueling discussion over regulatory inconsistencies in the U.S. crypto market.
Background:
- On April 21, 2025, the Commodity Futures Trading Commission (CFTC) issued a formal request for public comment on perpetual futures contracts, also known as “perps.”
- Perpetual contracts allow leveraged trading without expiry and have become a cornerstone of crypto derivatives markets globally, but remain largely unavailable to U.S. retail traders due to regulatory constraints.
- The CFTC’s notice seeks public input on the risks, benefits, trading mechanisms, and market structure of these instruments.
- The comment window will remain open until May 21, 2025, potentially paving the way for revised regulatory frameworks.
Why should you pay attention?
- The CFTC’s move signals a possible regulatory shift that could reshape access to crypto derivatives in the U.S.
- Crypto traders and platforms have long called out inconsistencies in U.S. financial oversight, especially when compared to high-risk traditional instruments like 0DTE options that remain legal.
- If approved, regulatory clarity on perps could open the door for compliant U.S. platforms to offer the same services that offshore players like Hyperliquid and BitMEX currently dominate.
- The broader implications stretch to decentralized trading, risk management, and customer protection practices, making this a turning point for the future of DeFi regulation.
Who said what?
- Acting Chairman Caroline D. Pham emphasized the need to understand how new technology is reshaping markets, stating:
“Innovative and new technology has created a renaissance in markets that are accessible to more people, as well as risks.”
- @tier10k highlighted the contradiction:
“Never made sense that US allows anyone to punt 0DTE options but perps were a step too far.”
- An X user @Rager expressed frustration at selective risk tolerance:
“People can gamble their life savings at a casino or on scratch-off tickets yet aren't allowed to trade perps.”
- Multiple users — including @NMTD8, @0xOmnia, and @frizzaud — replied with just “Hyperliquid,” pointing to the DEX’s rising popularity as an offshore alternative for perp trading.
- Another X user @CryptoParadyme referenced their earlier prediction from 2024, where they claimed there was a “non-zero chance” of legalization within six months — a timeline that passed without resolution.
- On the flip side, @SickAssPen admitted confusion,highlighting the complexity of crypto derivatives for newcomers. The user commented:
“I don't know what any of this means.”
Zooming out:
- Perpetual futures have become a global standard in crypto trading, yet the U.S. remains a regulatory outlier, leading to innovation flight and user migration to offshore or decentralized platforms.
- The CFTC’s public comment period represents transparent overtures to industry stakeholders since debates around stablecoin oversight and staking services.
- While platforms like Hyperliquid, and Binance have made perps accessible globally, often with leverage up to 200x, the U.S. remains cautious amid consumer protection concerns.
- Whether the CFTC’s outreach results in tangible policy change remains to be seen, but the crypto community's vocal response reflects mounting pressure for the U.S. to modernize its regulatory stance.
- With just one month to submit feedback, all eyes are now on how regulators, traders, and platforms engage and whether the perpetuals debate becomes a defining moment for crypto in the U.S.
