Kraken has launched perpetual futures contracts for Pi Network’s native token, PI, allowing traders to take long or short positions with up to 20x leverage.
The move gives traders a new way to speculate on PI’s price without holding the asset itself. It also marks PI’s debut on a major derivatives platform, despite the token still lacking listings on top spot exchanges like Binance or Coinbase.
How PI Perpetual Futures on Kraken Will Work
Perpetual futures are derivative contracts with no expiration date. Traders can open positions that track the price of PI and settle profits or losses based on price movements over time.
On Kraken Pro, users can access these contracts with over 40 collateral options and across more than 360 markets.
This flexibility allows both hedging and speculative strategies. Traders bullish on Pi Network can go long, while skeptics can short the token—betting that its price will fall.
$PI@PiCoreTeam perpetual futures now live with up to 20x leverage
The listing introduces more liquidity into the PI market. Greater trading activity could reduce volatility in the long term. However, in the short term, leverage may amplify price swings.
Market sentiment around PI is already fragile. Concerns over centralization—60% of the token supply remains under core team control.
PI Network Price Chart In May 2025. Source: TradingView
With futures now in play, bearish traders may open leveraged shorts, potentially accelerating PI’s downward momentum.
Meanwhile, increased volatility could trigger liquidations on both sides, causing sudden price spikes or crashes.
While the futures listing opens new opportunities, it also raises the stakes. Traders should monitor funding rates and open interest to gauge the strength of directional bets.
Overall, Kraken’s move brings new visibility to Pi Network. But for now, there is a lot of skepticism regarding the altcoin’s direction in the spot market.
Regulatory sandboxes have emerged as a concept to drive innovation in a controlled setting. They allow companies to test new crypto products and services while regulators observe and adapt regulations. While jurisdictions like the UK, the UAE, and Singapore have already created sandboxes, the US has yet to create one at the federal level.
BeInCrypto spoke with representatives of OilXCoin and Asset Token Ventures LLC to understand what the US needs to build a federal regulatory sandbox and how it can unify a fragmented testing environment for innovators.
A Patchwork Approach
As the name suggests, regulatory sandboxes have emerged as a tool for providing a controlled testing ground. This environment allows entrepreneurs, businesses, industry leaders, and lawmakers to interact with new and innovative products.
According to the Institute for Reforming Government, 14 states in the United States currently have regulatory sandboxes for fintech innovation.
Of those, 11 are industry-specific and cover other sectors like artificial intelligence, real estate, insurance, child care, healthcare, and education.
Utah, Arizona, and Kentucky are the only jurisdictions among these states with an all-inclusive sandbox. Meanwhile, all but 12 states are currently considering legislation to create some regulatory sandbox for innovation.
Due to its relatively short existence, the crypto market has underdeveloped legislation. While state-level sandboxes enable innovators to demonstrate their products’ capabilities to the public, they are significantly constrained by the lack of federal regulatory sandboxes.
The Need for Federal Oversight
Though statewide efforts to create regulatory sandboxes are vital for innovation, entrepreneurs and businesses still face constraints in developing across borders or reaching an audience at a national level.
Rapid advancements in fields like blockchain and artificial intelligence (AI) add a particular layer of uncertainty, given that existing legal frameworks may not be well-suited to these technologies.
At the same time, regulators may face difficulties in developing appropriate rules for these technologies due to a potential lack of familiarity with these constantly changing industries.
As a result, industry participants are increasingly calling for creating a federal regulatory sandbox. This environment could be a collaborative framework to address the gap, facilitating communication and knowledge sharing between regulators and industry stakeholders.
“The implementation of a federal regulatory sandbox in the United States has the potential to significantly enhance both innovation and regulatory oversight by reducing the uncertainties often associated with navigating the regulatory landscape across state lines. Such an initiative could help establish a coherent framework characterized by uniformity, continuity, and a conducive environment for innovation,” said Paul Talbert, Managing Director of ATV Fund.
According to Rademacher and Talbert, this proposal would meet the needs of all players involved.
Benefits of a Federal Regulatory Sandbox
A sandbox provides innovators with a controlled environment to test products under regulatory oversight without the immediate burden of full compliance with rules that may not yet fit their technology.
It also allows regulators to acquire firsthand insights into blockchain applications, facilitating the creation of more knowledgeable and flexible regulatory policies.
“Startups should have clear eligibility criteria to determine their qualification for participation, while regulators must outline specific objectives—whether focused on refining token classification frameworks, testing DeFi applications, or improving compliance processes,” Rademacher said.
It could also help the United States reinforce its position as a leader in technological innovation.
“By fostering innovation through simplicity, regulatory certainty, and conducive environments, the United States can significantly strengthen its competitive position in the global fintech landscape,” Talbert added.
While the United States has stalled in creating a federal framework for fintech innovation, other jurisdictions around the world have already gained significant ground in this regard.
Global Precedents
The Financial Conduct Authority (FCA), which regulates the United Kingdom’s financial services, launched the first regulatory sandbox in 2014 as part of Project Innovate. This initiative aimed to provide a controlled environment for testing innovative products.
The government asked the FCA to establish a regulatory process to promote new technology-based financial services and fintech and ensure consumer protection.
The United Arab Emirates (UAE) and Singapore, in particular, have made progressive strides in creating federal regulatory sandboxes.
The UAE, for example, currently has four different sandboxes: the Abu Dhabi Global Market (ADGM) Regulation Lab, the DSFA Sandbox, the CBUAE FinTech Sandbox, and the DFF Regulation Lab.
Their focus areas include digital banking, blockchain, payment systems, AI, and autonomous transport.
Meanwhile, the Monetary Authority of Singapore (MAS) launched its Fintech Regulatory Sandbox in 2016. Three years later, MAS also launched the Sandbox Express, providing firms with a faster option for market testing certain low-risk activities in pre-defined environments.
“The success of regulatory sandboxes in jurisdictions such as the United Kingdom, Singapore, and the United Arab Emirates has highlighted the importance of key attributes: regulatory collaboration, transparent processes, continuous monitoring, and the allocation of dedicated resources. As a result, a growing number of jurisdictions worldwide are looking to replicate the frameworks established by these pioneering countries to strengthen their competitive position in the global fintech landscape,” Talbert said.
Rademacher believes these jurisdictions’ innovations should prompt the United States to accelerate its progress.
For that to happen, the United States must overcome certain hurdles.
Challenges of a Fragmented US Regulatory Landscape
A fragmented network of federal and state agencies overseeing financial services presents a key challenge to establishing a US federal regulatory sandbox.
“Unlike other countries with a single financial authority overseeing the market, the U.S. has multiple agencies—including the SEC, CFTC, and banking regulators—each with different perspectives on how digital assets should be classified and regulated. The lack of inter-agency coordination makes implementing a unified sandbox more complex than in jurisdictions with a single regulatory body,” Rademacher told BeInCrypto.
Yet, in recent years, important SEC and CFTC actors have expressed interest in adopting a more favorable regulatory approach to innovation.
“Even though I tend to be more of a beach than a sandbox type of regulator, sandboxes have proven effective in facilitating innovation in highly regulated sectors. Experience in the UK and elsewhere has shown that sandboxes can help innovators try out their innovations under real-world conditions. A sandbox can provide a viable path for smaller, disruptive firms to enter highly regulated markets to compete with larger incumbent firms,” Peirce said in a statement last May.
However, the full scope of national regulations far exceeds the authority of these two entities.
Congressional and Constitutional Hurdles
Any legislative measure to develop a federal regulatory framework for sandboxes in the United States would have to undergo Congressional approval. Talbert highlighted several potential constitutional dilemmas the promotion of an initiative of this nature may face.
“These dilemmas include issues related to the non-delegation doctrine, which raises concerns about the constitutionality of delegating legislative power; equal protection considerations under the Fifth Amendment’s Due Process Clause; challenges arising from the Supremacy Clause; and implications under the Administrative Procedure Act (APA) and principles of judicial review,” he said.
To address these complexities, Congress must enact clear legal boundaries that ensure a regulatory framework is both predictable and open. Given the current administration’s emphasis on technological innovation, the prospects for creating a sandbox appear positive.
“Given the current composition of Congress, which aligns with the political orientation of the new executive branch, there may be a timely opportunity for regulatory reform. Such reform could facilitate the creation of a cohesive federal regulatory framework and enhance collaboration among federal agencies,” Talbert told BeInCrypto.
However, creating a federal regulatory sandbox is not a one-size-fits-all solution.
Balancing State Autonomy and Federal Regulations
State autonomy is enshrined in the US Constitution. This protection means that, even though a regulatory sandbox may exist at the national level, individual states still have the authority to restrict or prohibit sandboxes within their jurisdictions.
Encouragingly, most US states are already exploring regulatory sandboxes, and the states that have already implemented them represent diverse political viewpoints.
However, other considerations beyond political resistance must also be addressed.
“A federal regulatory sandbox might also face opposition from established financial institutions, including banks, which may perceive potential threats to their existing business models. Furthermore, federal budgetary constraints could impede the government’s capacity to support the development and maintenance of a federal regulatory framework,” Talbert added.
Effective federal regulations will also require a balance between businesses’ concerns and regulators’ responsibilities.
“The two biggest risks are overregulation—imposing excessive restrictions that undermine the sandbox’s purpose—or underregulation, failing to provide meaningful clarity. If the rules are too restrictive, businesses may avoid participation, limiting the sandbox’s effectiveness. If they are too lax, there is a risk of abuse or regulatory arbitrage. A well-executed federal regulatory sandbox should not become a bureaucratic burden but rather a dynamic framework that fosters responsible growth in the digital asset space,” Rademacher told BeInCrypto.
Ultimately, the best approach will require coordination from different governing bodies, industry stakeholders, and bipartisan collaboration.
Fostering Collaboration for a Successful Sandbox
Due to recent strained communication between tech and federal agencies, Rademacher believes fostering a cooperative atmosphere is essential for creating a functional federal sandbox.
“The approach must be collaborative rather than adversarial. Agencies should view the sandbox as an opportunity to refine regulations in real time, working alongside industry participants to develop policies that foster responsible innovation. Involvement from banking regulators and the Treasury Department could also be valuable in ensuring that digital assets are integrated into the broader financial system in a responsible manner,” he said.
Achieving this requires a bipartisan approach to harmonizing regulatory goals and setting clear boundaries. Industry collaboration with lawmakers and regulators is vital to showing how a sandbox can promote responsible innovation while safeguarding consumers.
“Its success will ultimately depend on whether it serves as a bridge between innovation and regulation, rather than an additional layer of complexity,” Rademacher concluded.
Binance, the world’s largest crypto exchange by trading volume, has introduced a compulsory KYC (Know Your Customer) re-verification process for its users in India.
This step applies to both existing and new users as the exchange looks to align with local anti-money laundering (AML) regulations.
Binance Enforces Stricter KYC in India Following Past AML Violations
Announced on April 18, the exchange said this re-verification step is part of its broader efforts to improve user security and comply with global regulatory standards.
As part of this process, users must submit updated identity documents, including their Permanent Account Number (PAN). The PAN is a 10-character alphanumeric code issued by the Income Tax Department and is required for financial transactions in India.
“Users in India may need to re-verify their KYC details, including linking their PAN. This is as per the Indian anti-money laundering (AML) laws and these requirements equally apply to all exchanges in India,” Binance stated on X.
Binance emphasized that this requirement stems from national AML laws and is not unique to its platform.
Binance also added that its users’ details were safe and secure. The exchange stated it would only request information required under Indian AML laws to prevent financial crime and support a safe, responsible digital asset ecosystem.
“This requirement is not unique to Binance and equally applies to all local and global exchanges registered under India’s AML legislation,” the firm added.
Under Indian law, traders must either submit proof of TDS payment or provide documentation for any applicable exemptions.
Meanwhile, Binance’s latest compliance efforts also follow regulatory troubles from the previous year. In 2024, India’s FIU fined the exchange ₹188.2 million (approximately $2.2 million) for failing to meet AML standards. The government also ordered the removal of Binance’s app from Apple’s App Store in the country.
So, the introduction of this re-verification process signals the company’s intention to fully comply with Indian financial regulations and restore trust among users and regulators alike.
Yesterday, El Salvador’s National Commission of Digital Assets (CNAD) met with staff members from the SEC’s Crypto Task Force. They sketched out plans for a cross-border “regulatory sandbox” for crypto.
This plan involves two pilot programs, each costing less than $10,000, where a US-based broker would partner with a Salvadoran tokenization firm. The plan is tailored to give data on the Task Force’s top regulatory priorities.
Will El Salvador Partner with The SEC?
The SEC’s meeting with CNAD discussed plans for El Salvador, as recorded in a log on the Commission’s site. In the meeting, the parties explicitly discussed priorities in line with Commissioner Hester Peirce’s initial statement announcing the Crypto Task Force.
Of four stated goals, the notion of a “cross-border sandbox” was listed first.
“This initiative offers the SEC Crypto Task Force a live, real-world case study to evaluate streamlined regulatory approaches for digital assets—an opportunity to observe and refine frameworks that could enhance US market innovation. A key lesson from El Salvador’s experience is the transformative potential of tokenization, particularly in real estate,” it claimed.
This sandbox will take the form of a pilot program with two scenarios, each costing $10,000 or less.
In Scenario 1, a US-based real estate broker will partner with a Salvadoran tokenization firm. They will enable investors to purchase tokenized shares of a piece of property.
Scenario 2 tests these firms’ ability to raise capital by selling tokenized shares, using this capital to actually launch a project. It doesn’t specify the project in question, but this scenario doesn’t mention real estate in any capacity.
Both these endeavors will give the SEC valuable data on joint business ventures in El Salvador.
Representatives from El Salvador and the SEC were joined by Erica Perkin, a lawyer specializing in digital asset consulting, and Heather Shemilt, a former partner at Goldman Sachs.
According to the document, participants discussed these proposals, but it doesn’t seem like they actually reached a binding agreement.
The Task Force only sent some of its staff to this meeting, no Commissioners were actually present. Still, this partnership with El Salvador could give the SEC a lot of useful insights.
This plan offers a low-cost way to gather hard data on half of the Task Force’s highest priorities, which seems like a valuable opportunity.
40+ collateral options
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