WASHINGTON, D.C. — Cantrell Dumas, Director of Derivatives Policy at Better Markets, issued the following statement in connection with the release of a new fact sheet warning about the economic and retail dangers of introducing perpetual futures into U.S. financial markets:

“Perpetual futures are a dangerous financial product that has no place in regulated U.S. markets. Designed without expiration dates, traded with extreme leverage, and marketed through gamified platforms, these contracts were born on offshore crypto exchanges to maximize speculation. Their rapid migration to U.S.-regulated venues poses a threat not only to unsuspecting retail investors but also to the broader stability of our economy.

“The Commodity Exchange Act was never meant to accommodate a product like this, and the CFTC should not treat perpetuals as business as usual. These are not just another futures contract. They break with core market principles and challenge the very foundations of CFTC oversight.

“The CFTC must scrutinize perpetuals with heightened urgency, clarify their legal status, and stop the misuse of self-certification for such structurally novel and risky products. It must also establish strict leverage limits, enhanced suitability standards, and robust, plain-language disclosure requirements. And if existing tools are not enough, the Commission must go to Congress and ask for the authority it needs to do the job right.”

The Fact Sheet is available here.

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Better Markets is a non-profit, non-partisan, and independent organization founded to promote the public interest in the financial markets, support the financial reform of Wall Street and make our financial system work for all Americans again. Better Markets works with allies—including many in finance—to promote pro-market, pro-business and pro-growth policies that help build a stronger, safer financial system that protects and promotes Americans’ jobs, savings, retirements and more. To learn more, visit www.bettermarkets.org.