INSUBCONTINENT EXCLUSIVE:
Perpetual futures for crypto, also called perpetual swaps or perps, are gaining momentum in the United States amid concerns over risk to
retail traders.Head of consumer products of Coinbase, Max Branzburg announced on June 13 that the exchange was planning to launch perps that
are compliant with the Commodity Futures Trading Commission (CFTC) for US customers
financial watchdogs have taken action against exchanges offering perps is the high-risk nature of the contracts.However, recent changes in
guidance among federal regulators after the election of US President Donald Trump could change that.Retail risk a concern as perpetual
futures seek approvalCrypto perpetual futures contracts allow investors to speculate on the future price of cryptocurrencies like Bitcoin
risk surrounds the ability for perp traders to highly leverage their positions, sometimes up to 100 times
These allow traders to hold a much larger position with a small amount of capital
the concept of margin or risk management
risk concerns led the CFTC to issue an advisory note that companies offering derivatives like perps should expect increased scrutiny
to public comment regarding perps and derivatives markets
Source: Irwin, CFTCUnder commodities law, DCMs can self-certify derivative products by filing a prospectus with the CFTC
commission on a peprtuals-like product
magnitude larger than the daily spot market [...] Perps have really been the heart and soul of the crypto market over the past
Source: CoinMarketCapWhether US crypto exchanges get the green light piecemeal on a by-product basis or receive clear guardrails from a new,
Chris Newhouse, director of research at digital-asset venture fund Cumberland Labs.Coinbase and the CFTC did not respond immediately to
