Former SEC and CFTC Officials Call for Lighter Regulation to Bring Crypto Perpetuals Onshore

Former officials from the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have urged regulators to adopt a lighter regulatory touch for cryptocurrency perpetual contracts. Their warning comes as the legislative effort known as the Clarity Act remains in recess, leaving the regulatory landscape uncertain.

Risk of an Offshore Perpetuals Market

The officials highlighted that the global crypto perpetuals market is estimated at roughly $90 trillion. They argue that imposing overly burdensome rules on U.S. exchanges could drive this activity offshore, limiting domestic participation and oversight.

Focus on Derivatives and Custody

Both agencies are continuing to work on frameworks for crypto derivatives and custodial services. The former regulators stress that clear, proportionate guidance is essential to foster innovation while protecting investors.

Calls for Balanced Regulation

In their statements, the former SEC and CFTC officials emphasized the need for rules that address market risks without stifling growth. They suggest that a collaborative approach between regulators and industry participants could achieve this balance.