How Do Regulatory Bodies View the Classification of Crypto Derivatives?

Regulatory views vary significantly globally, but there is a general trend toward classifying crypto derivatives as financial products, often subject to existing securities or commodities laws. For instance, the CFTC in the US generally views Bitcoin and Ether futures as commodities.

This classification imposes requirements for trading venues, capital reserves, and robust AML/KYC procedures, which often clash with decentralized exchange (DEX) models.