Former regulators warn that unclear U.S. crypto derivatives rules risk pushing the $90T perpetual-futures market offshore as agencies develop new custody and digital-asset standards.
DeFi & Yields ·
Former regulators have cautioned that ambiguity in U.S. crypto derivatives regulation risks redirecting the $90 trillion perpetual-futures market to overseas venues, according to reporting on the matter. The concern centers on the regulatory uncertainty surrounding how derivatives contracts—particularly perpetuals, which allow leveraged exposure without requiring ownership of the underlying asset—are classified and overseen across federal agencies.
U.S. regulatory bodies are currently developing new standards for derivatives oversight and digital-asset custody arrangements. Crypto derivatives, including futures, options, and perpetual contracts, have become the dominant trading activity in digital asset markets, with open interest and notional volumes regularly surpassing spot trading by multiples. The scale and complexity of these instruments have drawn attention from policymakers working to establish clearer guardrails around leverage, counterparty risk, and systemic exposure.
What remains unclear is the specific timeline and scope of the new custody and derivatives rules under development, as well as whether proposed standards will address the offshore migration risk directly. The extent to which existing U.S. trading venues—regulated or otherwise—will be affected by the incoming framework has not been detailed.