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The US approved high-leverage Bitcoin trading while crypto founders remain legally blocked from raising funds
On May 29, the CFTC, which is a US regulator, approved a Bitcoin perpetual contract for a regulated US exchange. Later, on Aug. 18, the SEC, another US regulator, proposed a legal way for crypto projects to raise money from the public under new rules.
Published:
Updated:
What happened
On May 29, the CFTC, which is a US regulator, approved a Bitcoin perpetual contract for a regulated US exchange. Later, on Aug. 18, the SEC, another US regulator, proposed a legal way for crypto projects to raise money from the public under new rules.
Confirmed
Global impact / market context
This means Bitcoin trading with borrowed money can happen on a regulated exchange, which may attract more investors. But crypto founders still can't raise funds legally yet, so their projects may struggle to get cash until the SEC's proposal becomes final.
Analyst inference
The contrast shows US regulators treating trading and fundraising differently. The CFTC's approval could increase Bitcoin trading activity and price swings. The SEC's proposal might later ease funding for token projects, but for now, uncertainty remains for crypto companies seeking capital.
Analyst inference
What to watch
- The CFTC approved a Bitcoin perpetual contract on May 29, which allows high-leverage trading, meaning traders can borrow money to make bigger bets, on a regulated US exchange. Confirmed
- The SEC's proposed rule could let crypto projects raise money from the public, but it's just a proposal. Watch if the SEC finalizes it and what conditions they set for token networks. Proposed
- The gap between approved trading and blocked fundraising may push crypto founders to seek funding elsewhere, possibly outside the US, or wait for the SEC's rules to become final. Analyst inference
Affected assets
- BTC — Bitcoin