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CFTC Eyes Onshoring Crypto Perpetual Futures

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CFTC Chairman Michael Selig's push to bring perpetual futures under U.S. regulatory oversight represents a significant development for crypto derivatives markets. With potential approval as early as April, this move could relocate Bitcoin's $85 billion derivatives engine onshore, shifting a major leverage tool from offshore exchanges to regulated domestic platforms. This regulatory clarity may enhance market stability and institutional participation.

The onshoring of perpetual derivatives could reduce counterparty risks associated with offshore platforms while providing clearer consumer protections. However, implementation details and compliance costs will determine the practical impact on trading volumes and market dynamics. This development signals growing regulatory maturity in crypto markets, potentially bridging gaps between traditional finance and digital assets.

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