Former Regulators Warn $90T Perpetual Volume at Risk in US Market

A group of former U.S. regulators is warning that overlapping derivatives requirements could make American markets less competitive, potentially resulting in the loss of $90 trillion in perpetual volume.

The warning comes as the SEC and CFTC review their regulatory treatment of derivatives and emerging financial products.

According to a recent letter signed by former officials, regulators should adopt a risk-based approach to crypto market regulation. This would involve avoiding overlapping requirements for products with similar risk profiles.

The issue is particularly relevant given that offshore perpetual futures trading exceeded $90 trillion in 2025, compared to approximately $28 trillion in 2023.