CME Group CEO Terry Duffy has cautioned that regulatory approval of perpetual futures contracts in the United States could expose retail investors to dangerous levels of leverage and significant financial losses. Perpetual futures, which have no expiry date and are widely used in crypto markets, have long been restricted in the U.S. due to concerns over their speculative nature. Duffy's warning comes as regulators consider expanding access to these instruments for American traders. Unlike traditional futures, perpetuals rely on funding rate mechanisms to track underlying asset prices, a structure critics argue incentivises excessive risk-taking. Duffy described the potential outcome as a 'disaster waiting to happen,' signalling that CME, one of the world's largest derivatives exchanges, remains cautious about the product despite growing industry demand.
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