Crypto’s favorite $90 trillion trading product is coming to Wall Street, but big banks are taking it slow
Regulated perpetual futures are officially arriving in the United States, marking a major step for a derivative that underpins roughly $90 trillion of global trading volume. While crypto-native exchanges and agile trading firms are moving quickly to capture retail and professional demand, traditional Wall Street banks are taking a more cautious posture—citing concerns about liquidity, risk management and the evolving regulatory framework.
Why this matters for the crypto market
Perpetual futures, or "perps," are a dominant product in crypto markets globally because they offer continuous exposure without expiry and enable high-leverage trading using stablecoins or margin. Bringing a regulated version to U.S. markets could reallocate substantial derivatives liquidity toward venues and firms that already specialize in crypto-native products. That shift matters for market structure: trading flows, price discovery and where leverage concentrates could move away from incumbent securities and futures platforms toward exchanges built around blockchain-native clearing and settlement mechanics.
Why big banks are holding back
Major banks' reluctance to immediately embrace regulated perps reflects several pragmatic concerns. First, liquidity depth for major crypto assets such as Bitcoin and Ether on newly regulated venues will need to prove resilient under stress. Second, risk and compliance teams remain focused on counterparty, operational and market-manipulation exposures that derivatives like perps can amplify. Third, core infrastructure—clearing, margining and surveillance systems tailored for continuous perpetuals—remains a work in progress, making banks wary of taking on prime broker or clearing roles until standards and interoperability mature.
As a result, the initial adoption wave looks set to be led by crypto exchanges, proprietary trading firms and smaller institutional players already integrated with stablecoin-based margin rails, custody providers and fast settlement networks. Those players can move faster to capture retail order flow and open interest in BTC, ETH and other major tokens.
Regulated perps also interact with other parts of the ecosystem. Custody providers will need to provide segregated solutions that satisfy both asset safety and margining needs. Stablecoins are likely to remain central as funding and settlement rails. And clearance and settlement systems—potentially including new central counterparties or adapted clearinghouses—will be necessary to scale institutional participation while meeting regulatory expectations.
The arrival of regulated perps does not occur in a vacuum. Market surveillance, reporting standards and anti-fraud measures will be focal points for regulators and exchanges, particularly because perpetuals can concentrate leverage and exacerbate volatility during rapid price moves. The product's availability could expand retail access to leveraged crypto exposure, which may affect retail trading patterns and episodic volatility in BTC and ETH markets.
Market participants will be watching several indicators as the new regime unfolds: liquidity and bid-ask spreads on regulated venues, growth in open interest for BTC and ETH perps, participation from prime brokers and clearinghouses, the emergence of standardized margin rules, and how surveillance and reporting regimes are implemented. Those developments will determine whether regulated perpetuals reshape where derivatives liquidity lives and who controls access to leveraged crypto exposure.