US Approves High-Leverage Bitcoin Trading Amid Regulatory Uncertainty

The US has seen a significant development in the crypto market, with the CFTC approving a Bitcoin perpetual contract for Kalshi, a regulated US exchange. This approval allows traders to take positions of up to six times their collateral posted.

In contrast, crypto founders still face legal hurdles when trying to raise funds from the public, as the SEC's proposed Regulation Crypto Assets is still in its proposal stage and requires public comments before it can become a reality.

The CFTC's approval of the Bitcoin perpetual contract marks a significant step forward for the US crypto market. Perpetuals are contracts with no expiry date, allowing traders to hold positions continuously without having to close them or roll into new contracts.

Kalshi filed its BTCPERP under Regulation 40.3, which allows the CFTC to review a contract's terms and decide whether it complies with the rules for a designated contract market. The exchange was able to offer a Bitcoin contract with exposure of up to six times the collateral posted by a trader.

The SEC's proposal, on the other hand, would allow token-specific offerings of up to $75 million under safe-harbor provisions and provide clarity on how tokens can be separated from investment contracts used to finance them.