CFTC Chair Clarifies Bitcoin Perpetuals Leverage Limits at 2-3x, Not 250x, on June 15

BTC-2.04%
According to CFTC Chairman Michael Selig on June 15, the regulatory body clarified four key misconceptions regarding crypto perpetual futures. Addressing concerns over high leverage, Selig stated that CFTC-regulated perpetual contracts are subject to the same leverage restrictions as other regulated futures contracts, with Bitcoin perpetuals typically operating at 2-3x leverage, not 250x. The extreme leverage offered by offshore exchanges reflects exchange-specific practices rather than the contract structure itself. Selig also clarified that CFTC regulations do not explicitly require fixed expiration dates for futures contracts, the agency conducted public comment periods receiving over 100 submissions, and funding rate mechanisms serve as market discipline to align perpetual prices with spot markets.
Disclaimer: The information on this page may come from third-party sources and is for reference only. It does not represent the views or opinions of Gate and does not constitute any financial, investment, or legal advice. Virtual asset trading involves high risk. Please do not rely solely on the information on this page when making decisions. For details, see the Disclaimer.
Comment
0/400
TAO92996MYvip
· 06-16 07:20
DYOR 🤓
Reply0