SEC and CFTC Announce Joint Plan to Boost U.S. Crypto Leadership

The agencies aim to harmonize regulations, enable 24/7 trading, onshore perpetual contracts, and support DeFi innovation through targeted exemptions.

Summary

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Terms & Concepts
  • Perpetual Contracts: A type of derivative in cryptocurrency trading with no expiry date, allowing continuous speculation on asset prices.
  • Portfolio Margining: A risk-based margin system that allows for lower collateral requirements by considering overall portfolio risk rather than individual positions.
  • DeFi Innovation Exemptions: Regulatory allowances intended to facilitate decentralized finance developments by providing flexibility in compliance requirements.