CFTC Raises Regulatory Issues on Perpetual Contracts

On April 21, 2025, the U.S. Commodity Futures Trading Commission (CFTC) raised two questions regarding perpetual contracts: how to regulate them and how trading, clearing, collateral, and risk control can be conducted in a market that operates 24 hours a day. Perpetual contracts, abbreviated as perp, are futures without an expiration date, allowing traders to hold positions and leverage at will. This product was invented by the crypto industry in 2016 and has been continuously traded in the market, with no corresponding products in traditional markets. The CFTC is conducting research on this, expressing interest, but it is clear that perp products have entered the regulatory spotlight due to their massive trading volume and potential impact on traditional financial markets. Additionally, products have emerged in the market that package traditional commodities as gold perps.

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