DeFi Debrief: Week of June 1, 2026

Three Notable Announcements from the CFTC

On May 29, 2026, the CFTC published three significant statements. First, the Divisions of Clearing and Risk, Market Oversight, and Market Participants issued a staff advisory regarding 24/7 trading, clearing and settlement. The advisory outlines staff expectations for risk management, compliance, and clearing for regulated entities considering 24/7 trading. The advisory acknowledges the role on-chain trading has played in stoking demand for 24/7 trading, noting, “[t]he ability to engage in, and maintain, markets on a 24/7 basis has been, in part, paralleled by evolutions in market technologies, such as blockchain networks and decentralized infrastructure.”

Second, the CFTC approved the listing of Kalshi’s bitcoin perpetual futures contract BTCPERP, which references the spot price of Bitcoin and marks the first approval of its kind in the U.S. In an accompanying opinion piece, CFTC Chairman Michael Selig described the approval as a milestone for domestic digital asset markets, stating that “today’s action to onshore crypto asset perpetuals was the natural extension of this American achievement and reinforces U.S. leadership in digital financial technology.” Alongside the approval, the CFTC issued a policy statement outlining the agency’s approach to perpetual contracts. The policy statement emphasized that products based on assets other than Bitcoin will continue to be reviewed on a case-by-case basis and encouraged industry engagement on the review and approval for new perpetual futures.

Third, the CFTC’s Market Participants Division issued an interpretation and no-action position in response to a request from Coinbase Financial Markets, a registered futures commission merchant, confirming the categorization of certain crypto asset perpetuals as foreign futures and addressing FCM transfers of customer crypto assets to foreign brokers as margin. The positions relate to Coinbase’s plan to offer certain digital commodity derivatives products listed on its affiliated foreign exchange, Deribit FZE.

SEC Commissioner Pierce Delivers Speech on Permissionless Privacy Enhancing Technologies

On May 27, 2026, SEC Commissioner Hester Pierce spoke about privacy enhancing technologies at Georgetown Law’s Institute of International Economic Law. Her remarks underscored that personal privacy and national security are not at odds. Commissioner Peirce also encouraged collaboration with the SEC’s Crypto Taskforce on approaches to anti-money laundering that protect individual privacy.

She reflected: “[E]mpowering government to be able to identify, pursue, and punish the bad guys is important to the security of the nation and its people, but so too is empowering people to protect information about their lives, including their financial lives.”

You can read Commissioner Pierce’s full speech here.

Senate Finance Committee Hearing on Department of Treasury Budget Request

On June 3, 2026, Treasury Secretary Scott Bessent testified before the Senate Finance Committee on President Trump’s proposed Treasury Department budget for FY 2027. The hearing focused primarily on the implementation of the Working Family Tax Cuts Act, the Trump-IRS settlement agreement, and the national debt.

Committee Chairman Sen. Mike Crapo (R-ID) and Sen. Steve Daines (R-MT) both highlighted the need for clear “rules of the road” for crypto taxation in order to “support innovation, and help ensure that the United States remains competitive in the global digital markets.” Of note, Secretary Bessent encouraged members to “get behind” the Clarity Act market structure legislation.

You can watch a recording of the hearing here.

Notable and Quotable

“From a national security perspective, regulatory clarity is an enforcement advantage. When responsible activity is brought onshore and subject to U.S. oversight, law enforcement gains visibility. When companies operate under clear compliance obligations, investigators gain stronger partners. When America leads, adversaries and illicit actors have fewer opportunities to exploit regulatory gaps.”

– Letter to Senate Leaders from Blockchain Association signed by 160 former national security, intelligence, and law enforcement professionals in support of the Clarity Act