Wall Street institutions are sounding risk warnings after the Trump administration signaled its support for perpetual futures, according to Reuters. The report, published Monday, describes the administration's stance as an embrace of the products, which Reuters refers to as "perp" futures.
Perpetual futures are derivative contracts without an expiry date, a structure that has been common in cryptocurrency trading. Reuters frames the administration's position as one that has prompted established financial firms to flag concerns about risk.
The Reuters report does not detail which specific firms raised alarms or what concerns they cited. It also does not specify what actions, if any, the administration has taken beyond its stated support for the products.
The headline points to a divide between the administration's posture toward these derivatives and the caution coming from long-established Wall Street players. Reuters characterizes the reaction among those firms as alarm over risk.
Details on the regulatory treatment of perpetual futures, and on how the administration's support might translate into policy, were not included in the available reporting.
Watch for follow-up coverage from Reuters and other outlets on which regulators or firms respond, and on whether the administration moves from signaling support to formal policy steps on perpetual futures.
