#btc #eth #xrp #sol Green Light for Crypto-Style Trading Model in the US: Next Up, Equities
The path has been cleared for the introduction of "perpetual" futures—a model widely used in the US crypto market—to regulated exchanges, specifically for contracts linked to individual stocks.
According to a report by CoinDesk, Michael Selig, a senior official at the US Commodity Futures Trading Commission (CFTC), stated on November 3 that perpetual futures contracts based on stocks are considered approved under existing rules for security futures. These products will be subject to joint oversight by the CFTC and the Securities and Exchange Commission (SEC).
Trading on price movements without owning the underlying stock
Known to crypto investors as "perpetuals" or "perps," these contracts allow traders to take positions on price movements without actually owning the underlying asset. Unlike traditional futures, these contracts have no set expiration date. The use of leverage can amplify both potential gains and losses.
The path has been cleared for the introduction of "perpetual" futures—a model widely used in the US crypto market—to regulated exchanges, specifically for contracts linked to individual stocks.
According to a report by CoinDesk, Michael Selig, a senior official at the US Commodity Futures Trading Commission (CFTC), stated on November 3 that perpetual futures contracts based on stocks are considered approved under existing rules for security futures. These products will be subject to joint oversight by the CFTC and the Securities and Exchange Commission (SEC).
Trading on price movements without owning the underlying stock
Known to crypto investors as "perpetuals" or "perps," these contracts allow traders to take positions on price movements without actually owning the underlying asset. Unlike traditional futures, these contracts have no set expiration date. The use of leverage can amplify both potential gains and losses.
