CFTC’s Mersinger: Crypto Perpetual Futures Approval Expected Soon

Outgoing CFTC Commissioner Summer Mersinger announced that crypto perpetual futures might see US regulatory approval “very soon.” These derivative contracts, currently traded offshore, could enhance the US market if permitted. Mersinger will soon join the Blockchain Association, indicating further involvement in the crypto sector as she transitions from her CFTC role.

In a recent statement, Summer Mersinger, an outgoing commissioner of the Commodity Futures Trading Commission (CFTC), announced that crypto perpetual futures contracts are likely to receive regulatory approval in the US quite soon. Speaking to Bloomberg TV on May 22, she expressed optimism about the potential for these contracts to enter the market. “We’re seeing some applications, and I believe we’ll see some of those products trading live very soon,” Mersinger said.

Mersinger indicated that having a regulated crypto derivatives market in the US would be beneficial, not just for the industry but also for the market as a whole. She believes it’s vital to move trading back onshore, away from offshore exchanges. Currently, crypto perpetual futures, which allow speculation on cryptocurrency prices without requiring ownership, are only available through centralized exchanges such as Binance and OKX. These platforms are outside of US regulatory oversight.

It’s interesting to note that the largest exchange, Binance, has an almost staggering trading volume of $95 billion per day, as reported by CoinGecko. Binance provides over 500 crypto perpetual trading pairs, offering leverage up to 125x. Meanwhile, US traders find themselves limited as these types of contracts aren’t approved domestically, creating a reliance on foreign platforms.

On the regulatory front, Mersinger also highlighted the recent procedural vote to advance the GENIUS stablecoin bill. She sees this move as a clear indication that the crypto asset class is here to stay and affirms her belief in the potential of these tokens to reinforce economic strength in the United States.

As her term at the CFTC comes to a close at the end of May, Mersinger is set to transition to a new role at the Blockchain Association. This trade group represents around 100 members in the crypto sector. She will take over the leadership from Kristin Smith, who is stepping down as CEO, with Mersinger officially starting on June 2.

In her upcoming role, she expressed confidence in the incoming CFTC chair, suggesting he will be a strong advocate for the crypto industry. Mersinger’s goal, she noted, is to continue supporting and advancing the cryptocurrency space more effectively in her new position.

This transition not only reflects her commitment to the industry but also signals a potential shift in regulatory attitudes towards cryptocurrencies and their derivatives.