Crypto traders are chasing 10x leverage in the US while Europe tightens the screws behind the scenes
Regulators in the US and Europe are taking opposing approaches to regulating crypto perpetual derivatives, impacting leverage access and market share.Summary
In February 2026, the European Securities and Markets Authority (ESMA) asserted that perpetual contracts likely fall under CFD regulations, imposing strict retail leverage caps (2:1) and product governance scrutiny under MiFID II, effectively squeezing retail access.
Conversely, the US CFTC, led by Chairman Michael Selig, is working to "onshore" perpetuals by integrating them into existing futures infrastructure, as demonstrated by Coinbase Financial Markets offering up to 10x intraday leverage on its perpetual-style futures.
The divergence creates a significant leverage wedge, potentially shifting billions in annual fee revenue from Europe to the US. While Europe prioritizes compliance certainty for institutions, the US aims to balance regulatory safeguards with competitive leverage. The jurisdiction that successfully balances leverage access with clearing credibility is poised to host the future of crypto derivatives trading, otherwise liquidity may migrate offshore or to decentralized platforms.
(Source：CryptoSlate)