- Offshore perpetuals exceeded $90T in 2025, up sharply from about $28T two years earlier, according to Kalshi estimates.
- Former SEC and CFTC officials urged clearer rules, warning overlapping requirements could raise compliance costs and hinder U.S. markets.
- Payward’s reported proposal to offer Hyperliquid-linked perps through Bitnomial remains subject to CFTC approval.
Crypto in America reports that former SEC and CFTC officials warned the U.S. could lose ground in perpetuals. Their comments came as both agencies review derivatives rules and crypto custody requirements. The warning centers on offshore perpetual trading, which Kalshi estimates exceeded $90 trillion in 2025, as U.S. regulators weigh new rules.
Former Officials Push For Clearer Perps Rules
The officials submitted a letter after the SEC and CFTC sought public input on derivatives in June. Former CFTC Chairman Chris Giancarlo signed alongside Brian Quintenz and Sharon Brown-Hruska.
Former SEC Commissioner Steven Wallman and economist Chester Spatt also signed. The group argued that similar risks should face similar rules. It also opposed overlapping requirements that could raise compliance costs.
The letter comes as the CFTC considers bringing perpetual futures into the U.S. President Donald Trump recently said Chairman Michael Selig was working to bring Hyperliquid into America.
Offshore Perps Draw U.S. Attention
Kalshi estimates offshore perpetuals trading exceeded $90 trillion in 2025. That compares with about $28 trillion two years earlier. Meanwhile, Bloomberg reported that Payward, Kraken’s parent company, is discussing U.S. access to some Hyperliquid perpetual contracts.
The proposed structure would use Payward subsidiary Bitnomial, a regulated U.S. exchange and clearinghouse. Payward has reportedly submitted the proposal to the CFTC. However, U.S. traders would need regulatory approval before accessing the contracts.
Kalshi sponsored the letter through Bellementis PLLC, which helped with drafting. The signatories said they received no compensation, and Kalshi had no control over its contents.
SEC Revisits Crypto Custody Rules
The SEC is separately reviewing planned changes to investment adviser custody rules. Last week, it sent the proposal to the White House OIRA for review. The rewrite would address digital asset custody under federal securities laws.
The proposal remains unpublished, leaving potential crypto custodians and requirements unclear. Previously, former SEC Chair Gary Gensler proposed broader safeguarding rules covering crypto and other client assets.
The Atkins-led SEC later scrapped that proposal. Separately, the Regulation Crypto proposal entered the Federal Register on August 21. Public comments remain open until October 20.
