SEC and CFTC Advance Crypto Derivatives Rulemaking
- The SEC and CFTC are actively developing rules for the $2.5 trillion crypto industry, focusing on derivatives like swaps and perpetual futures.
- A bipartisan group of former SEC and CFTC officials, including Chris Giancarlo, urged for similar regulatory treatment for similar risks to prevent driving trading overseas.
- Kalshi estimates offshore perpetuals trading reached $90 trillion in recent years, up from $28 trillion two years prior.
- The SEC has sent a rewrite of its crypto custody rules to the White House for review, aiming to clarify how regulated advisers can custody digital assets.
Both the SEC and CFTC are pushing forward with initiatives to define jurisdiction over crypto derivatives amid stalled market-structure legislation. The focus is on ensuring that regulation does not inadvertently drive markets overseas by imposing excessive compliance costs.
With offshore perpetuals trading reaching significant volumes, there is a push for U.S.-based regulation that balances risk without burdening liquidity providers excessively. (Source)
