A bipartisan group of former SEC and CFTC regulators is warning that the United States risks losing its competitive edge in the rapidly expanding perpetual contracts market. The warning, highlighted by Eleanor Terrett, comes as offshore perpetuals trading exceeded $90 trillion in 2025, up sharply from about $28 trillion two years earlier, according to estimates from Kalshi.
The former officials submitted a letter after the SEC and CFTC sought public input on derivatives in June. Signatories include former CFTC Chairman Chris Giancarlo, former CFTC commissioners Brian Quintenz and Sharon Brown-Hruska, former SEC Commissioner Steven Wallman, and economist Chester Spatt. They argued that similar risks should face similar rules and opposed overlapping requirements that could raise compliance costs and hinder U.S. markets.
The letter comes as the CFTC weighs strategies for onshoring the perpetuals market. President Donald Trump recently said CFTC Chairman Michael Selig was working to bring Hyperliquid into America. Bloomberg reported that Payward, Kraken's parent company, is discussing U.S. access to some Hyperliquid perpetual contracts through its regulated subsidiary Bitnomial. The proposal has reportedly been submitted to the CFTC, though 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 that Kalshi had no control over its contents. Separately, the SEC is reviewing planned changes to investment adviser custody rules and recently sent its proposal to the White House OIRA for review, while the Regulation Crypto proposal has entered the Federal Register with public comments open until October 20.
