CFTC vs CME: Regulatory Battle Erupts Over Onchain Perpetual Futures

Regulatory battles continue to unfold in the cryptocurrency market as the CME and CFTC disagree over onchain perpetual futures. The Commodity Futures Trading Commission (CFTC) has been pushing for greater transparency in cryptocurrency derivatives trading, particularly through its proposed regulations regarding onchain perpetual futures.

The CFTC wants to require that all platforms offering these types of products, such as the CME's BTC-PERPETUAL contract, must register with and comply with Commission regulations. However, the CME has expressed concerns over the feasibility and cost of this proposal, citing the technical difficulties associated with implementing such requirements.

The proposed rules would require that all onchain perpetual futures contracts be settled in cash, rather than through a physical delivery of underlying assets. This change could potentially impact market liquidity and trade volumes, according to industry experts.