Theodore Gillibrand, son of Senator Kirsten Gillibrand, is launching a new crypto derivatives exchange, American Perpetuals Exchange Corporation (APEC), seeking dual oversight from the SEC and CFTC. The exchange aims to list single-name equity perpetuals, a market currently operating offshore, and has raised $30 million. In a separate development, CME Group is preparing to sue the CFTC over perpetual futures, while Illinois has introduced a new tax on digital asset transactions.
Theodore Gillibrand, son of Senator Kirsten Gillibrand, has raised $30 million for a new venture called American Perpetuals Exchange Corporation (APEC). This new exchange is seeking a license to list single-name equity perpetuals, a type of financial instrument currently operating offshore. APEC's strategy involves pursuing joint oversight from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
In parallel developments within the cryptocurrency and derivatives markets, CME Group is preparing to file a lawsuit against the CFTC. The dispute centers on perpetual futures, a product that CME Group offers. Separately, the state of Illinois has enacted new legislation that imposes a tax on digital asset transactions within its borders.
The push for dual SEC-CFTC oversight by APEC highlights the ongoing regulatory debate surrounding digital assets and derivatives. The offshore market for single-name equity perpetuals presents an opportunity for a U.S.-based exchange to capture market share, provided it can navigate the complex regulatory landscape. The lawsuit by CME Group against the CFTC suggests potential friction or disagreement over the regulation and classification of perpetual futures, which are a significant product in the derivatives market.
Theodore Gillibrand, son of Senator Kirsten Gillibrand, has raised $30 million for a new venture called American Perpetuals Exchange Corporation (APEC). This new exchange is seeking a license to list single-name equity perpetuals, a type of financial instrument currently operating offshore. APEC's strategy involves pursuing joint oversight from both the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).