CME CEO Duffy Warns on June 4 of Systemic Risk from Perpetual Crypto Futures

KALSHI-8.49%
According to CME Group CEO Terry Duffy, on June 4, the CFTC-approved perpetual crypto futures contracts create systemic risk for investors and could extend to equities and commodities. Speaking at the Piper Sandler Global Exchange and Fintech conference, Duffy described the arrival of perpetual futures as 'a disaster waiting to happen,' citing concerns that retail investors may not understand how funding rate costs erode their positions over time. The CFTC approved the first U.S.-regulated perpetual futures contract on May 29, offered by Coinbase and Kalshi, allowing traders to hold contracts indefinitely with leverage ratios up to 50-to-1.
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