Regulatory Divergence on Crypto Derivatives Intensifies
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February 2026 has highlighted a growing transatlantic regulatory split in crypto derivatives markets. The European Securities and Markets Authority (ESMA) has signaled that perpetual futures contracts tied to Bitcoin and Ethereum likely fall under existing Contracts-for-Difference (CFD) regulations, potentially imposing stricter leverage limits and investor protections. This contrasts sharply with developments in the United States, where the Commodity Futures Trading Commission (CFTC) appears to be facilitating greater access to high-leverage products, with reports of traders pursuing 10x leverage opportunities.
This regulatory divergence creates a fragmented landscape that may drive market activity toward jurisdictions with more permissive frameworks. While increased U.S. accessibility could boost trading volumes and liquidity in the short term, the European approach emphasizes risk mitigation and could establish more sustainable market structures. Market participants must navigate these conflicting signals, balancing opportunity against evolving compliance requirements across regions.
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