In February 2026, the European Union and the United States came to the fore with remarkable regulatory moves in the crypto derivatives market. The European Securities and Markets Authority (ESMA) and the US Commodity Futures Trading Commission (CFTC) have exhibited different regulatory attitudes towards leveraged contracts known as “perpetual futures” and “perpetual contracts”, especially those indexed to crypto assets such as Bitcoin and Ethereum.
Strict Restrictions on Perpetual Contracts in Europe
In the statement published by ESMA on February 24, it was stated that perpetual type derivatives, which offer leveraged access to crypto assets, have become increasingly prominent recently. The regulator emphasized that regardless of the name of these products, the focus should be on their legal and economic function.
In ESMA’s assessment, these contracts will be largely subject to contracts for difference (CFD) regulations. In line with the EU CFD legislation implemented since 2018, leverage for retail investors is limited to a maximum of 2:1, while the mandatory closing of positions is decided when the margin decreases to 50 percent.
In addition, ESMA stated that mass marketing methods such as extensive e-mail and pop-ups are incompatible with the EU’s target audience-oriented market products approach. Companies are requested to conduct suitability tests in their sales strategies and prepare a Main Information Document for Investors (PRIIPs KID).
“Onshore” Strategy and Flexible Infrastructure in the US Market
The CFTC follows a more inclusive policy in approaching perpetual contracts. In the latest statement, President of the Authority, Michael Selig, stated that existing tools will be used to include regulations in the US market for such new generation derivative products. The CFTC positions perpetual contracts as mainstream financial instruments rather than “exotic” products.
Starting in July 2025, Coinbase began offering perpetual-style futures products under CFTC supervision to US customers with 5-year maturities and up to 10x leverage. In a similar move, Cboe also introduced cash-settled Bitcoin and Ethereum long-term contracts. Behind the products, traditional derivatives market standards such as clearing, custody, position limits and comprehensive market supervision are observed.
Key Differences and Market Dynamics
The main difference in the regulatory approaches of the EU and the USA is in the limit on leverage and access to retail investment. While retail investors in the EU market face a leverage limit of 2:1, US-based exchanges offer up to 10 times leverage for the same type of perpetual products. This distinction in leverage opportunities creates an important commercial advantage for actively trading investors.
While the global centralized crypto derivative volume reached 85.7 trillion dollars in 2025, a single exchange, Binance, took a 29.3 percent share of the global pie with a transaction volume of 25.09 trillion dollars. According to Kaiko analysis, perpetual derivatives increased their volume compared to the previous year, reaching 68 percent in Bitcoin transactions.
If, thanks to the regulations on the US side, 5 to 10 percent of the world’s perpetual volume is shifted to the US market, it is estimated that an additional transaction fee income of between 514 million and 1.37 billion dollars could be generated with an annual transaction volume of approximately 2.57 trillion to 6.86 trillion dollars.
Sanction and Enforcement Signals
The consequences for the market will depend on the actual implementation steps of the regulators. On the European side, ESMA and national authorities are expected to include certain perpetual products within the scope of CFDs and implement retail leverage limits, mandatory risk warnings and incentive restrictions.
In the USA, CFTC’s new product approvals, rule changes and developments in market infrastructure will show the spread of regulated perpetual products. The steps taken by traditional market actors such as Cboe in this regard are being closely monitored.
