Morning Minute: CFTC Chair Says U.S. Perpetual Futures Are Coming
CFTC Chairman Mike Selig announced the agency is moving to allow perpetual futures—crypto contracts with no expiration, and the dominant global derivatives instrument—back into the U.S. market, reversing previous regulatory exile. Guidance and rulemaking are imminent. Perps account for over 90% of global crypto derivatives volume and were previously off-limits to U.S. users, pushing liquidity offshore. The decision aims to recapture this market by enabling both institutional and retail access through regulated venues. This could invite institutional capital that was previously hesitant due to legal uncertainty. The biggest onchain perps venue, Hyperliquid, currently leads in liquidity and non-KYC access, but faces new competition if regulated platforms like Coinbase, Kraken, or CME offer CFTC-approved perps to U.S. institutions. Such platforms align with compliance needs—prime brokerage, KYC/AML, and audited systems—unlike Hyperliquid. Regulatory changes could also pressure Hyperliquid’s fee structure and market share. However, overall perps volume is expected to rise, with growth likely split between onchain venues like Hyperliquid and centralized U.S. entities.
