In a significant development within the cryptocurrency and trading sectors, Theodore Gillibrand, the 22-year-old son of Senator Kirsten Gillibrand (D-NY), has reportedly secured $30 million to establish a new derivatives exchange startup, American Perpetuals Exchange Corporation (APEC). The startup is already valued at approximately $300 million.
Senator Kirsten Gillibrand has emerged as a staunch advocate for cryptocurrency regulation and stablecoin legislation in Congress. However, in light of her son’s entrepreneurial endeavors, she emphasized her non-involvement, stating, “My son is a grown adult starting his own independent business. I have no involvement in it whatsoever. That said, I’m enormously proud of him and wish him nothing but the best.”
The funding round was spearheaded by the venture capital firm Lux Capital, according to reports. APEC aims to offer perpetual futures contracts, known as “perps,” which enable traders to speculate on future asset prices without actually owning them or adhering to the expiration dates typical in traditional futures contracts.
An APEC spokesperson stated, “The American Perpetuals Exchange Corporation will be offering perpetual futures on US equities,” adding that the platform will not include cryptocurrencies and is not built on blockchain technology. This strategic choice sets APEC apart from many of its competitors in the rapidly evolving digital asset landscape.
Furthermore, as detailed in documents submitted to the Securities and Exchange Commission, APEC plans to seek approval from the Commodity Futures Trading Commission for offering perpetual futures linked to equities and stock indexes, taking a distinctly regulated approach.
Theodore Gillibrand expressed his vision for APEC, stating, “It is clear that the future of these markets is not in offshore and unregulated foreign entities but rather in a regulated and institutional American company.” This statement reflects a growing sentiment in the industry regarding the importance of U.S. regulatory frameworks.
Gillibrand recently graduated from Stanford University and has gained experience in the crypto space through previous roles, including a fellowship at the venture firm Paradigm and an internship at Andreessen Horowitz, known for its significant investments in crypto.
Senator Kirsten Gillibrand has worked extensively to create a federal regulatory framework for digital assets alongside bipartisan support, including with Senator Cynthia Lummis (R-WY). This collaboration has been pivotal in advancing legislation that aims to clarify rules surrounding cryptocurrency innovation, while also advocating for measures like the GENIUS Act to establish a regulatory framework solely for stablecoins.
The emergence of products like perpetual futures has gained traction among traders, paralleling an increased push by regulatory bodies and lawmakers to bring more oversight to digital asset trading in the United States instead of allowing it to reside with overseas exchanges. The involvement of Lux Capital further solidifies the startup’s credibility and potential for growth within this competitive marketplace.
