Faryar Shirzad, Chief Policy Officer of Coinbase, said on X:
“You can use perpetuals to protect against a fall in shares you already own, or to gain exposure to a company. And unlike traditional futures, you don’t have to keep replacing the contract when it expires, paying trading fees each time. Yale economist and Nobel Prize winner Robert Shiller first proposed the concept of perpetual futures in 1992. Perpetual futures exist for crypto assets already, and for stocks in other places around the world. They’re worth making available to U.S. investors. That’s why@Coinbase and five partners filed a brief supporting the @CFTC’s decision to let these products trade here in the U.S. 🧵1/7″
“A perpetual removes these rollovers. Instead, small payments pass between buyers and sellers every hour to keep the contract’s price aligned to the asset’s.
For some individual investors, perpetuals are an efficient way to access stock appreciation and manage risk, without the repeated expense of replacing expiring contracts. 2/7″
“But keeping them out of regulated US markets won’t make them disappear. They already trade offshore, beyond US market safeguards. By the plaintiffs’ own count, nearly $700 billion in stock perpetuals traded in August alone, none of it under US rules.
Bringing that activity under US oversight gives regulators greater visibility and investors protections they may not have offshore. 4/7″
Source: Faryar Shirzad
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