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Inside the CME and CFTC’s battle over onchain perpetual futures

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Inside the CME and CFTC’s battle over onchain perpetual futures

It’s highly unusual for the largest derivatives exchange operator in the U.S., the CME Group, to be at war with its regulator, the Commodity Futures Trading Commission (CFTC) — but that’s now happening in a situation brought about by the agency’s decision to allow blockchain-based perpetual future products.

Last month, the CME sued the ​CFTC and its chairman, Mike Selig, challenging his decision to let ‌the prediction markets platform Kalshi and cryptocurrency exchange Coinbase (COIN) list crypto perps, decentralized derivative contracts that allow users to speculate on the price of an asset with leverage and no expiration date.

Now, both sides await federal court action that could have significant influence on how the U.S. approaches the rapidly growing arena, with non-U.S. perps volume reportedly growing to $60 trillion in volume last year.

CME claims the agency is mislabeling the products, and therefore misapplying the law. Futures need an end date, and the products known as perps are designed for traders to be able to take a financial position on an asset’s future without any deadlines. The lawsuit argues these perps are harmful to its long-dated futures products and alleges that the CFTC’s sudden embrace of them did not consider the ramifications.

Mounting tension between the two entities ramped up around the start of Iran conflict, which saw interest spike in perpetual contracts on oil prices traded 24/7 on off-shore decentralized finance (DeFi) exchanges like Hyperliquid, as well as blockchain prediction markets hosting trades tied to the oil markets.

Those on the side of the CFTC’s reforming agenda in this highly politicized schism are voicing frustration, if not outrage.

“It is unbelievably unusual to see the largest exchange in America attacking its own regulator, where the regulator is basically saying everybody who’s registered, including the CME, can offer these types of products, and the CME says no one should be allowed to offer them,” said Jake Chervinsky, CEO of Hyperliquid Policy Center (HPC) in an interview.

HPC is a Washington, D.C.-based non-profit focused on creating compliant DeFi in the U.S, heavily focused on perps and on-chain financial infrastructure, and backed by a $28 million initiative from the Hyper Foundation.

Not long after CME filed suit, this disagreement took another turn, when the exchange made a bid to fast-track 24/7 trading for crude oil futures but was blocked by the CFTC. CME Group’s attempted 24/7 West Texas Intermediate (WTI) crude oil contract is a traditional expiring futures product rather than a crypto-style perpetual swap. The CME had cited investors’ desire to manage their positions “whenever news breaks.”

Representatives of the CFTC declined to comment. At the time, CFTC Chair Mike Selig said on X that “CME’s decision to disregard the Commission’s effort to undertake a reasoned analysis of the critical issues at stake is wholly inappropriate.”

CME, which played a significant role in getting bitcoin futures listed and was helpful in getting crypto accepted and adopted in the U.S., has a deep influence over commodities that the exchange has successfully wielded in Washington D.C. over the years, thanks in large part to its outspoken chairman, Terry Duffy.

“The definition of a swap is pretty clear,” he said in an interview with CoinDesk. “When two parties exchange payments to each other, that is deemed a swap,” he said. “When you’re dealing in swaps contracts, that comes with obligations to maintain five-day margin and register with the CFTC as a participant in the swaps market.”

As such, the CFTC did not follow the protocol which is effectively the law of the land, Duffy claimed, adding a complaint that the CFTC may not be prepared to enforce its emerging perps policy properly, such as blocking non-U.S. traders from trading on Kalshi or other CFTC-regulated platforms. “What are you doing to police U.S. participants from not participating in something that it’s illegal for them to do?” Duffy asked.

“I’ve not seen an answer to that yet, but yet they’re holding up my 24/7 contract of self certification,” he said.

Duffy had tangled with opponents in the digital-assets space before, once debating then-FTX CEO Sam Bankman-Fried on the industry’s efforts to cut out intermediaries months before Bankman-Fried’s company collapsed and he was imprisoned on a conviction tied to fraud.

During the CME’s recent Q2 earnings call, Duffy addressed the growing market presence of perpetual futures, stating that institutional clients do not use perpetuals for hedging. He said that CME has “the full technical and operational capabilities to launch perpetual futures” but “have not heard demand from our customers for these products.” Duffy went on to describe competitors’ perp markets as “an incubator system that I’m not paying for.”

When it comes to the way futures contracts work on traditional commodities, the structure differs from crypto, according to Liz Davis, partner and co-chair of the financial services practice at the law firm Davis Wright Tremaine.

“These perpetual contracts that started out in the crypto space are a different type of product than, say, pork bellies or crude oil,” Davis said in an interview. “There’s an underlying tension with these new types of products being offered on traditional commodities. Here you have delivery issues, and it really isn’t traded 24/7, because you have monthly contracts that you roll from month to month.”

Davis said there’s a lot to consider in a market in which the commodities the perps are tied to can be limited to trading only five days a week and set to only change hands within certain hours, as opposed to being always on.

“You just need to think through the various issues in terms of marginal liquidity and custody over the weekend; staffing and resources; your surveillance now needs to go over to the weekends and holidays, etc.,” she said.

Duffy’s crypto perps stance is viewed by crypto natives and DeFi enthusiasts as typical of the way large incumbents handle innovation that might threaten their dominance.

“It’s really going to come down to this sort of policy fight between this massive incumbent and the regulator who is trying to allow challengers to that incumbent, allowing competition that the incumbent doesn’t want to see happen,” HPC’s Chervinsky said, adding:

“The issue with the CME isn’t whether they’re pro or anti-crypto. It’s an incumbent using regulation to hold off competition, and they’re willing to take opposite positions depending on the moment to try to beat back the competition.”

So the future of CFTC-driven perps remains on a bubble as the CME readies its case, which includes claims that the agency rubber-stamped the Kalshi application, which had been submitted a day before approval.

“The CFTC approved perps despite a history of arguing they are swaps and without issuing a regulation despite seeking public comment in April 2025,” noted Jaret Seiberg, a financial policy analyst with TD Cowen, arguing the CME may have the “upper hand” in this legal dispute. “This distinction matters as the regulatory and tax regimes for swaps and futures are different.”

Though the CFTC is meant to be a five-member commission, Chairman Selig currently occupies the leadership as its lone member, so his is the lone voice of the agency. And he wanted the regulator to clear a path for U.S. perps in the crypto space, signing off on a Kalshi product and approving customer activity at Coinbase.

“It’s interesting that this is being done with a single-person commission,” Davis said. “When you have a five-person commission, the rulemaking doesn’t go as quickly, because of the counter view. So you’re sort of getting deprived of that counter view, other than the CME bringing suit and their commentary.”

Representatives of Kalshi and Coinbase declined to comment about the perps regulatory situation.

So far, Selig’s agency is opening up this U.S. market through a policy statement — not a new rulemaking that gives interested parties a chance to comment and try to steer the outcome. It’s much the same crypto approach as its sister agency, the Securities and Exchange Commission, which has issued a wide array of new policy statements without yet pursuing formal and durable rules.

The CFTC determined that a case-by-case review process was suitable for perps. As a result, Kalshi’s debut offering emerged last month, and the company said it reached more than $1 billion in trading volume in less than a week.



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Shein Long-Awaited IPO Just Got Harder To Sell As Tariffs Bite

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Shein Long-Awaited IPO Just Got Harder To Sell As Tariffs Bite


Shein has spent the better part of three years chasing a stock market listing, first in New York, then in London and now, finally, in Hong Kong. But the numbers it revealed to prospective investors this week suggest that the pitch has gotten considerably tougher.

The fast-fashion giant swung to a $99 million loss in the first quarter of 2026, a stark reversal from the same period a year earlier. The figures, disclosed in a draft prospectus filed with the Hong Kong Stock Exchange as part of its long-awaited initial public offering, mark the clearest signal yet that tariffs and regulations are landing squarely on Shein’s bottom line.

Part of the loss was a one-off, a $328 million non-cash accounting charge tied to the fair-value treatment of convertible preferred shares, a technical adjustment that converts investor stock into ordinary shares once a company lists.

What might concern investors more is that Shein’s U.S. revenue fell 14.3% year-on-year to roughly $2 billion, as the Trump administration’s removal of the de minimis import exemption in May 2025 stripped away the loophole that had let low-value parcels enter America duty-free.

The exemption’s removal didn’t just raise Shein’s costs, it hit the company at the core of its business model, which depends on shipping enormous volumes of very cheap items directly to individual consumers. The U.S., which accounted for 29.4% of Shein’s annual revenue as recently as 2023, has shrunk to 22.5% of quarterly sales. Its operating margin slid to 2.9% from 3.9% a year prior, as marketing and fulfillment costs rose while sales stagnated.

Shein is now weighing U.S. price increases to offset the added duties but that’s a move that risks eroding its price advantage.

European Regulations Bite Too

And if the U.S. pressure wasn’t enough, Shein flagged that Europe, roughly a third of its annual revenue, could deliver a similar or even larger blow after the European Union introduced a charge equivalent to around $3.50 on low-value e-commerce parcels this month, part of a broader push by Brussels to close what it views as an unfair advantage enjoyed by overseas marketplaces shipping directly to consumers.

Shein’s own filing warned that disruption in Europe could “match or exceed” what it experienced in the U.S.

Zoom out, and the full-year picture is sobering. Shein’s net profit for 2025 fell 38.7%, to roughly $2.06 billion, even as revenue climbed 8% to $37.1 billion, a sharp deceleration from the 20.7% sales growth it posted in 2024.

Meantime, Shein cleared its biggest remaining hurdle on July 10 when it received approval from China’s securities regulator for the Hong Kong listing, targeting for September or October this year and aiming to raise around $3 billion at a valuation of $40 billion to $50 billion.

That’s well below the roughly $98.2 billion it commanded during its 2022 funding round, and even the $64 billion valuation it was assigned in a subsequent 2024 round. And some investors have reportedly pushed for the valuation to be cut further still, to around $30 billion.

That repricing tells its own story. Shein’s IPO has now been rerouted three times, abandoned in New York amid U.S. political scrutiny over its supply chain and labor practices, shelved in London after regulatory and reputational headwinds, and finally redirected to Hong Kong, where Beijing’s backing offers a smoother, if smaller, path to market.

Backers including Sequoia China, Tiger Global, General Atlantic and IDG Capital stand to get their first real liquidity event, whatever the final price.

Analysts Warn Of Further Slip

But some analysts are openly skeptical that Shein can command a premium, or even hold its ground once it goes public. Shen Meng, director at Beijing-based investment bank Chanson & Co, said he doubts Shein will achieve any meaningful uplift in valuation at its Hong Kong IPO or in the secondary market compared with its last private fundraising round, arguing the retailer would have fared far better had it completed its London or New York listing years earlier.

Tony Huang of Deloitte China’s Capital Market Services Group struck a more optimistic tone in a June note, suggesting that an easing of Middle East tensions and a reopening of the Strait of Hormuz could potentially give Hong Kong listings, including Shein’s, a tailwind. But even that came with an acknowledgment that Shein’s own operational and geopolitical challenges remain the more decisive factor in how investors ultimately price the deal.

According to the filing, proceeds from the listing will fund technology investment, including AI for demand forecasting, alongside international expansion, brand-building and Shein’s corporate responsibility initiatives.

Shein is also pressing ahead with plans to plough roughly $1.5 billion into logistics hub development in Guangdong province to improve operational efficiency at a time when the cost of moving goods across borders has become its single biggest headache.



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Bitcoin (BTC) price news: Price drops 2% after U.S. close while Korea’s Kospi plunges 10%

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Uphold reduces global headcount by 17% amid enterprise pivot

Bitcoin has come under pressure since the U.S. stock market closed Monday, with South Korea’s Kospi leading Asian equities lower and providing risk-off cues to the cryptocurrency market.

BTC has fallen to $63,200 from nearly $65,000, a 2.7% decline that has spilled over into the broader crypto market and dragged down the likes of ether (ETH), XRP (XRP), solana (SOL), and others. The drop ends the brief resilience the market showed earlier Monday as shares in NVDA tanked on Wall Street.

The Senate has shelved the CLARITY Act to prioritize a Russia sanctions bill, making a vote on the much-awaited legislation, touted to deliver regulatory clarity and unlock massive institutional buying for digital assets, unlikely before next week. This leaves only the final days before the Aug. 8 recess.

Asian stocks cracked sharply, with South Korea’s Kospi index falling 10% to its lowest level since mid-April. The index has now dropped 25% from its mid-June peak. The latest decline featured steep losses in heavyweights such as Samsung and SK Hynix. “The market is falling out of love with chipmakers at the moment and that’s been a big driver of the bull market in South Korea,” InvestingLive wrote.



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HELOC and home equity loan rates today, Monday, July 27, 2026: How to choose when rates are nearly identical

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HELOC and home equity loan rates today, Monday, July 13, 2026: Just a 2-basis-point differential


The difference between the current home equity loan (HEL) rate and the average HELOC rate is 13 basis points, according to Curinos, a real estate data analytics company. Especially when rates are this close, choosing the right option doesn’t come down to just rates. It’s how you plan to use your funds that will dictate the loan product that is best for you.

The average HELOC adjustable rate is 7.23%, according to real estate data analytics company Curinos. The 2026 HELOC low was 7.19%, last observed in mid-May.

The national average rate on a fixed-rate home equity loan is 7.36%, up from its 2026 low of 7.31% in late June.

Both rates are based on applicants with a minimum credit score of 780 and a maximum combined loan-to-value ratio (CLTV) of less than 70%.

Most HELOCs are variable-rate products, meaning their interest rates are tied to an external interest rate. When that rate rises or falls, the rate on your HELOC generally follows suit.

HELOCs are typically tied to the prime rate, the baseline rate banks currently charge their most creditworthy customers. 

The best HELOC lenders will assess the risk any borrower presents and add a margin to protect themselves. Riskier borrowers will have larger margins, while those considered less risky will receive smaller ones. Factors such as your credit score, debt-to-income ratio (DTI), and loan-to-value ratio (LTV) will all be considered in this assessment.

A home equity loan and its interest rate work like a HELOC in some ways and like a traditional primary mortgage in others.

As with a HELOC, the prime rate usually impacts your home equity loan rates, and lenders incorporate a margin into your rate. Both HELOC and home equity loan rates are loosely influenced by the Federal Reserve’s federal funds rate and broader economic conditions.

However, like many first mortgages, home equity loans are typically fixed-rate products, meaning you’ll have the same interest rate for the entire term. Fixed-rate HELOCs exist, but they’re much less common.

Learn more: HELOC and home equity loan interest rates: How they work and what you can expect to pay

Specific loan requirements vary by lender, but generally, home equity loans and HELOCs require a borrower to:

  • Have a FICO credit score of 680 or higher

  • Show a history of good credit and proof of sufficient monthly income

  • Obtain an appraisal to determine the current market value of the home

  • Have at least 15% to 20% equity in the house

  • Have a debt-to-income ratio of 43% or less

  • Show proof of in-force homeowners insurance.

Lenders may charge origination fees and other closing costs on a HELOC or home equity loan. When shopping for yours, make sure to ask about all possible application fees, annual charges, early account closure fees, and other one-time or ongoing expenses. Shop multiple lenders to find the lowest interest rate and the fewest fees. 

Read more: Home equity line of credit (HELOC) vs. home equity loan: What’s the difference, and which is right for you?

Rates vary significantly from one lender to the next. You may see rates from nearly 6% to as much as 18%. It really depends on your creditworthiness and how diligent you are as a shopper. The national average for a HELOC is 7.23%, and 7.36% for a home equity loan. Those can serve as a guide when shopping rates from second mortgage lenders.

For homeowners with low primary mortgage rates and significant equity in their homes, it’s likely a good idea to consider a HELOC or a home equity loan now. First off, rates are the lowest in years. And you don’t give up that great primary mortgage rate that you earned when you bought your house. You can use cash drawn from your equity for home improvements, repairs, and upgrades. Or virtually anything else. 

If you withdraw the full $50,000 from a home equity line of credit and pay a 7.25% interest rate, for example, your monthly payment during the 10-year HELOC draw period would be about $302. That sounds good, but remember that the rate is usually variable, so it changes periodically, and your payments will increase during the 20-year repayment period. A HELOC essentially becomes a 30-year loan. HELOCs and HELs are best if you borrow and repay the balance within a much shorter period.



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Here’s why Shiba Inu’s imbalance zone is in focus after price falls by 11%

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Here's why Shiba Inu's imbalance zone is in focus after price falls by 11%


Shiba Inu’s momentum finally lost some steam after one of the strongest rallies among large-cap memecoins.

In fact, SHIB fell by almost 11% in the last 24 hours as traders took some profit off the table after the breakout earlier this week. This move came after SHIB briefly took the mantle as leader of the recent memecoin rotation, drawing in new speculative money.

Hence, the question – What would be a good time for bulls to re-enter the market?

An unfinished price gap is back in focus

Shiba Inu’s explosive move over the last 3 days left behind a big unfilled gap. The latest correction has brought the old technical zone back into play.

At the time of writing, SHIB’s price action was moving towards the imbalance zone between $0.0000042 and $0.00000485. This is a key zone zone that could trigger buyers to add more positions as they aim to maximize on the prevailing bullish trend. 

Especially given that the memecoin has been trading above both its 20-day and 50-day EMAs on the daily chart.

In most cases, the markets often revisits these inefficiencies before deciding on their next direction. While such gaps are not always filled, they frequently attract liquidity during corrective phases.

Momentum indicators have been reflecting the recent slowdown too. For instance, the Stochastic RSI appeared to be retreating from an oversold region (Above 80), consistent with the anticipated short-term sell-off.

The midpoint of the imbalance zone at $0.00000456 could be the next target in line.

SHIB price analysis
Source: TradingView

Shiba Inu’s on-chain metrics affirm the bearish technicals

Here, it’s worth pointing out that the pullback is not just about technicals.

SHIB’s token burn activity dropped sharply over the last 24 hours. In doing so, it eliminated one of the supply-side factors that supported the last bull run.

Shiba Inu burn rateShiba Inu burn rate
Source: Shibburn

On the other hand, the derivatives sector saw a wave of unwinds.

More than $2.1 million worth of long positions were forced out of the market following the last correction. This indicated that longs with leverage had started leaving the market. In fact, this liquidation wave made some of the excess positioning from the prior uptick fade away.

SHIB long liquidationsSHIB long liquidations
Source: Coinalyze

As it stands, it could be that the market is simply resetting, rather than reversing. If bulls manage to defend the imbalance zone, SHIB could stabilize and prolong its prevailing bullish trend.


Final Summary

  • SHIB loost 11% of its value, with more than $2.1 million in long positions liquidated .
  • A fall in token burns could increase the chances of an anticipated correction move towards the $0.0000042–$0.00000485 imbalance zone.



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Uphold reduces global headcount by 17% amid enterprise pivot

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Uphold reduces global headcount by 17% amid enterprise pivot

The cuts come as the crypto industry grapples with a prolonged downturn. After three consecutive quarters of declines, the total cryptocurrency market capitalization fell to around $2.1 trillion at the end of the second quarter, while trading volumes weakened and retail participation slowed amid higher interest rates, geopolitical uncertainty and persistent outflows from crypto exchange-traded fund (ETF).

U.S. spot bitcoin ETFs recorded a combined $6.9 billion of net outflows in May and June. While flows have recovered in July, including a six-day streak of inflows, the rebound remains modest relative to the withdrawals seen during the broader market downturn.

Uphold stressed that it is not closing its U.K. operations or any of its international offices, adding that all locations remain fully staffed and operational.

The firm’s enterprise platform enables banks, fintechs and broker-dealers to integrate digital asset services for their own customers, an area the company said is seeing rapid growth.

The momentum in that business, combined with weaker retail demand, made the restructuring necessary as it shifts personnel and investment toward enterprise products. Further growth announcements are expected in the coming months, the company said.

The firm remains bullish on the long-term outlook for the retail market. “In 2026, we’re expanding our popular consumer app into a multi-asset, blockchain-enabled financial companion,” McLoughlin said. “By year end, the app will offer US stocks, tokenized securities, asset-backed lending, credit cards, prediction markets and enhanced DeFi yield opportunities on assets including XRP,” he added.



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