High-Risk Crypto Perpetual Futures Could Be Coming Soon To US
Perpetual futures, or perpetual swaps, for cryptocurrencies are gaining traction in the U.S. as Coinbase plans to launch compliant products for retail customers. Historically, U.S. exchanges lacked access to these high-risk contracts, which allow speculation on cryptocurrencies like Bitcoin and Ether without expiration dates. Concerns arise from the potential for traders to leverage positions up to 100 times, risking liquidation from minor price fluctuations. The CFTC has previously scrutinized exchanges offering similar products, but regulatory attitudes are shifting under the Trump administration, with recent actions indicating a more open stance toward perpetual swaps. The CFTC has invited public comments on these contracts and approved a legal perpetual futures contract by Bitnomial. The perpetual derivatives market is substantial, with open interest reaching $704 billion as of June 20, 2023, primarily driven by active traders rather than passive investors.
