US Regulators Face Backlash Over Approval of Perpetual Futures
· Business · Economic Times, Reuters
The US Commodity Futures Trading Commission's decision to approve perpetual futures for crypto and single-stock equities has triggered significant opposition from established Wall Street exchanges. Unlike traditional derivatives, perpetual futures do not have an expiration date and allow investors to maintain leveraged positions indefinitely. Market participants warn that these products, which often feature leverage up to 50 times, could introduce systemic liquidity and counterparty risks. Trading volume for crypto-based perpetual futures reached $61.7 trillion in 2025, marking a 29% increase from the previous year. While the regulator maintains that oversight is necessary to protect investors, critics argue these instruments should be classified as swaps to ensure stricter compliance.
Why it matters
The introduction of perpetual futures into the US market threatens to disrupt established risk-management safeguards and potentially exposes retail investors to extreme volatility and counterparty defaults.
Read the original report — Economic Times
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