Trump administration’s embrace of "perp" futures sets off risk alarms for Wall Street stalwarts

The Trump administration's introduction of perpetual futures to the US has raised concerns among Wall Street executives, according to interviews with industry insiders. These novel offshore products, which trade around the clock without expiration, are predominantly utilized by retail investors and have reached $61.7 trillion in trading volume in 2025, according to CryptoQuant data.

However, traditional exchanges and market participants warn that these perpetual futures, or "perps," introduce significant new risks to the multitrillion-dollar derivatives market. Critics argue that the products could disrupt market structure and erode safeguards implemented following the 2007-09 financial crisis. The CFTC's approval of US-listed crypto perps in May, as well as single-stock equity perps, has exacerbated tensions with established Wall Street firms, who argue that perps should be classified as swaps, a category with stricter regulations.

This dispute is further fueled by the administration's support for crypto and prediction markets, which many traditional firms view as a threat to their existing businesses.