Backpack US brought former Securities and Exchange Commission chairman H. David Piwowar onto its board this week, a move that signals a sharp turn toward regulated crypto derivatives — specifically perpetual contracts. The appointment comes as the exchange looks to operate under formal U.S. oversight, a bet that compliance will be the winning strategy in an increasingly scrutinized market.
The former SEC chairman
Piwowar served as SEC chairman from 2017 to 2019, taking the helm during a period when the agency was still figuring out how to handle digital assets. He's been critical of what he called the SEC's "regulation by enforcement" approach during his tenure, but his background gives Backpack US a direct line to insider knowledge of how the agency thinks. The exchange didn't spell out Piwowar's specific duties on the board, but the hire is clearly about navigating regulatory waters.
Perpetual contracts push
Backpack US has been building out its derivatives offering for months, and perpetual contracts — a type of futures contract that never expires — are at the center of that push. Problem is, most crypto perpetuals are offered offshore or through unregulated venues in the U.S. The company is betting it can offer them under the watch of the Commodity Futures Trading Commission or through a regulated exchange like a designated contract market. That's where Piwowar's experience matters: he knows the rulebooks, the filing process, and the political currents at the SEC and CFTC.
Why now
The timing isn't accidental. The SEC under its current leadership has been ramping up enforcement against crypto exchanges that offer unregistered securities or derivatives. Several major platforms have been hit with fines or forced to delist tokens. Backpack US is trying to get ahead of that wave. By putting a former regulator on the board, the exchange is making a statement: we're playing by the rules, and we have the inside track to prove it.
The appointment is effective immediately. Backpack US hasn't announced a launch date for its regulated perpetuals, but the board change makes the direction unmistakable.
