In brief
- Industry leaders are arguing perpetuals eliminate the costly contract rollovers that plague traditional futures.
- Some are advocating for DeFi inclusion by forming a special advisory committee focused on decentralized trading.
- More than 90% of crypto derivatives trading volume consists of perpetual contracts occurring outside U.S. borders.
Major crypto companies are urging regulators to embrace crypto perpetual futures contracts, arguing the financial instruments could revolutionize derivatives trading if properly regulated in the U.S.
In 1992, American economist and Nobel Laureate Robert Shiller proposed perpetual futures to enable trading of illiquid assets like real estate and human capital.
These contracts had no expiration…