How Do the Regulatory Requirements Differ between Perpetual and Traditional Crypto Futures?

Regulatory requirements often differ significantly. Traditional futures contracts, especially those with physical delivery, typically fall under established financial regulators (like the CFTC in the US) and require strict licensing and centralized clearing.

Perpetual futures, being a crypto-native innovation with no fixed expiration and cash settlement, often operate in a regulatory gray area or are offered by offshore exchanges with less stringent oversight. Regulators are increasingly looking to classify and regulate perpetuals similarly to traditional derivatives due to their systemic risk.