Crypto Perps Rulemaking Could Bring Trading Onshore
US crypto perps regulation is advancing as the SEC and CFTC review rules for derivatives, including swaps, security-based swaps and perpetual futures. The agencies are examining how to define these products and where their jurisdiction should begin and end, while crypto market-structure legislation remains stalled during the summer recess.
A bipartisan group of former SEC and CFTC officials, including former CFTC Chairman Chris Giancarlo and former Commissioner Brian Quintenz, urged regulators to apply similar rules to similar risks and avoid overlapping compliance requirements. The group warned that excessive or poorly calibrated regulation could continue pushing crypto derivatives trading offshore.
The issue is significant because offshore perpetual futures trading was estimated by Kalshi at more than $90 trillion in 2025, compared with about $28 trillion two years earlier. CFTC Chairman Michael Selig is reportedly exploring ways to bring offshore perps platforms, including Hyperliquid, into the United States.
Separately, the SEC sent a proposed rewrite of its crypto custody rules to the White House Office of Information and Regulatory Affairs for review. The proposal could clarify how regulated investment advisers and other firms may custody digital assets through qualified custodians. Details remain undisclosed, but the SEC is expected to remove outdated provisions and take a different approach from former Chairman Gary Gensler’s broader safeguarding proposal.
The SEC’s “Reg Crypto” proposal has also been published in the Federal Register, with public comments open until October 20. Together, these developments point to a more defined US framework for crypto perps, derivatives and custody.
Neutral
The immediate market impact is likely neutral because the article describes consultations, proposed rules and White House review rather than a final policy change. Traders may initially view lighter, clearer regulation as bullish for US crypto derivatives, custody services and market liquidity. Bringing perpetual futures onshore could improve transparency, institutional access and price discovery, while reducing reliance on offshore venues.
However, the rules remain uncertain. Regulators could impose licensing, margin, custody or reporting requirements that increase costs or restrict access. The proposed framework may also take time to implement, so it is unlikely to produce an immediate change in spot prices or volatility. The $90 trillion estimate for offshore perps highlights substantial demand, but it does not guarantee that activity will migrate to the US.
Short term, derivatives traders may react to statements from the SEC, CFTC or senior officials, with volatility concentrated in platforms and tokens associated with perpetual-futures activity. Longer term, clear and risk-based rules would generally support institutional participation and market stability, similar to the positive reaction often seen when major jurisdictions provide clearer crypto licensing frameworks. Conversely, fragmented rules or delays could preserve offshore liquidity and maintain regulatory risk. Overall, the developments are constructive in direction but too preliminary to justify a bullish or bearish classification.