US Regulators Move on Derivatives, Leave Token Fundraising in Limbo

The US has taken a significant step towards regulating Bitcoin trading by approving high-leverage perpetual contracts for regulated exchanges. However, this move comes at a time when crypto founders are still legally blocked from raising funds through token networks.

On May 29, the Commodity Futures Trading Commission (CFTC) approved a Bitcoin perpetual contract for Kalshi's platform, allowing traders to hold positions with up to six times their collateral. This was followed by Bitnomial launching US-regulated perpetual futures, including a live Bitcoin contract.

The approval of these contracts is seen as a crucial step towards establishing the domestic market for crypto derivatives in the US. However, the Securities and Exchange Commission (SEC) has yet to propose rules that would allow crypto projects to raise funds from the public through token networks.

The SEC's proposed Regulation Crypto Assets aims to provide a framework for token-specific offerings up to $75 million, but it still needs to undergo public comments and another vote. This proposal is seen as a crucial step towards allowing crypto founders to raise funds in the US market.