Perpetual futures for cryptocurrencies, also known as perpetual swaps or perps, are starting to attract attention in the US amid concerns over risks to retail traders.
Risks and Restrictions of Perpetual Futures
Perpetual futures enable investors to speculate on the future price movements of cryptocurrencies such as Bitcoin and Ether. Unlike regular futures contracts, which have an expiration date, perpetual futures can be held indefinitely. One key risk with these contracts is the ability to trade with high leverage, sometimes up to 100 times. For example, a trader with $1,000 can hold a position worth $10,000. Experts warn that such conditions could lead to quick liquidation of positions with small market fluctuations.
Regulatory Changes at CFTC
Rules for the US crypto industry are changing rapidly. After the 2020 elections, the CFTC has begun to reassess its regulatory approaches. In 2023, the CFTC issued an advisory note warning that companies offering derivative tools like perpetual futures should expect increased scrutiny. However, recent changes in the CFTC's approach indicate a possibility of greater openness towards such products. In April 2025, the CFTC requested public comments on perpetual contracts and noted interest from market participants.
Market Size of Perpetual Futures
Perpetual derivatives represent a significant portion of the crypto market. According to CoinMarketCap, the open interest in perpetuals as of June 20 was $704 billion. Experts note that the perpetual futures market has been significantly larger than the spot market for years and continues to grow. Demand for such products is expected to come from active traders and market participants.
Perpetual futures for cryptocurrencies are becoming increasingly relevant despite existing risks. The influence of regulatory changes and growing interest from traders may reshape the landscape of this instrument in the market.
