ESMA Perpetual Futures Classification Sparks Debate on Leverage Caps

The European Securities and Markets Authority (ESMA) has stated that perpetual futures are likely to fall under the contracts for difference (CFD) measures, which would impose a 2:1 leverage cap on retail clients in the EU. The Hyperliquid Policy Center (HPC) has filed a case with the European Commission to have this classification settled differently.

The HPC argues that the classification of perpetual futures should depend on their economic characteristics, not the technology used to record them. They claim that supervisory classification should be based on the structure and economic properties of a product, not its legal classification.

ESMA published a public notice on February 24, 2026, stating that the product name is immaterial, and that firms have to evaluate these products under MiFID II and investor protection rules. The notice also stated that contracts that provide leveraged exposure to crypto assets and are not settled exclusively by physical delivery are caught under the CFD measures.