CFTC Signals Crypto Perps Could Trade in US as Commissioners Head for the Exits

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Outgoing CFTC Commissioner Summer Mersinger signaled Thursday that the Commission could “very soon” greenlight crypto perpetual futures products in the U.S., despite leadership shakeups at the federal agency that risk diminishing its enforcement powers.     


“I think those can come to market now, and we're seeing some applications, and I believe we'll have some of those products trading live very soon,” Mersinger told Bloomberg TV in an interview Thursday. 


The products “will be really beneficial to the [crypto] industry broadly and to our economy here in the United States,” she added.


Perpetual futures are financial contracts in which traders speculate on the underlying value of an asset such as Bitcoin or XRP. The offerings’ proponents argue that the availability of 24/7 leveraged trading stateside could significantly bolster participation and inject more liquidity in the U.S. market. However, critics argue perpetual futures pose significant risks to investors.





Commissioner Mersinger’s comments on the likelihood of crypto perpetuals futures’ debut in the U.S. come ahead of her departure from the agency to lead the crypto lobbying group, the Blockchain Association.


She's one of four commissioners that have signaled their intentions to depart the CFTC, as Republican Caroline Pham and Democrats Christy Goldsmith Romero and Kristin Johnson will also soon step down from their posts. 


The Commission is poised to continue its work under the Trump-appointed Brian Quintenz, a pro-crypto regulator who is awaiting confirmation from the Senate. But with fewer regulators in its ranks, the federal agency may struggle to perform its duties in a timely manner, stymieing any pro-digital asset regulations reforms.


Quintenz may well be the only commissioner left, depending on when the others make their departures, at least until additional commissioners are confirmed by the Senate.


“The reduced number of commissioners could delay enforcement actions, rulemaking activity, and coordination with other financial regulators, increasing pressure on the Senate to expedite the confirmation process,” several partners of Paul Hastings, a U.S.-based law firm, said in a blog post on Thursday.


Edited by James Rubin


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