Consumer advocacy group Better Markets opposes NCUA stablecoin proposal, citing capital and liquidity gaps. Perpetual futures volume hit $86.2 trillion as offshore exchanges thrive beyond U.S. reach. CME challenges CFTC classification.
Alpha Score of 61 reflects moderate overall profile with moderate momentum, weak value, strong quality, moderate sentiment.
Perpetual futures now dominate crypto derivatives trading. Centralized exchanges cleared $86.2 trillion in perp volume last year, up 47% from the prior year, according to venture firm a16z. Decentralized platforms added $6.7 trillion, a 346% increase. The Financial Times called the product "the most dangerous in crypto."
Consumer advocacy groups are pressing regulators to tighten rules before the market grows further. Better Markets, a Washington-based nonprofit led by former Skadden attorney Dennis Kelleher, has filed more than 500 comment letters to financial regulators and been cited over 180 times in final rules, according to the group's website. It also files court briefs supporting tighter oversight.
In July 2026, Better Markets opposed a National Credit Union Administration stablecoin proposal. Director of Banking Policy Christopher Appel said the plan "repeats the same mistakes Better Markets has already identified with the OCC, FDIC, and Treasury stablecoin proposals – no meaningful capital or liquidity standards, inadequate reserve diversification requirements, and a failure to address the significant financial stability risks associated with stablecoins."
Perpetual futures are cryptocurrency derivatives with no expiration date. Traders use leverage to hold positions indefinitely, with a funding-rate mechanism that keeps contract prices aligned with the spot market, according to Chainalysis. The product was first proposed by economist Robert Shiller in 1993 and popularized by BitMEX in 2016.
Cornell University research found that roughly 93% of crypto derivatives trades involve perpetual futures. The combination of leverage – some offshore platforms offer up to 100x – continuous 24/7 trading, automatic liquidations, and recurring funding-rate payments creates a risk profile that consumer advocates say many retail investors do not fully understand.
Chainalysis noted that most perpetual futures trading happens on offshore exchanges outside U.S. jurisdiction. Both centralized and decentralized platforms generally block U.S. customers from accessing actual perp products, according to a16z. That limits the Commodity Futures Trading Commission's enforcement reach even as volumes climb.
The regulatory gap is getting harder to ignore. Real-world asset perpetual futures now account for 44% of trading volume on exchanges like Hyperliquid. Consumer advocacy groups are working to shape U.S. rules before they are finalized, filing comments, lawsuits, and maintaining contact with regulators.
Better Markets has positioned itself as a counterweight to Wall Street in the policymaking process, engaging with the White House, Congress, and federal agencies. Its July letter on the NCUA stablecoin proposal criticized the lack of capital and liquidity standards, inadequate reserve diversification, and failure to address financial stability risks.
While the letter did not directly address perpetual futures, it shows how advocacy organizations push for regulation before rules are written. For a product that still largely escapes direct U.S. oversight, early regulatory attention may matter more than late enforcement.
CME Group has challenged the CFTC's approach to classifying crypto perp contracts in court. CME, with an Alpha Score of 59/100 and a Moderate label, sits at the center of the institutional derivatives market. The exchange operator's legal dispute with the CFTC over how perpetual futures should be categorized under U.S. derivatives law remains unresolved.
The CFTC permitted certain exchanges to offer regulated crypto perpetual futures in 2026. Consumer advocates argue the products expose retail investors to excessive risk. The commission has one commissioner overseeing the entire crypto market, a constraint that limits its capacity to write or enforce rules for a product that now accounts for trillions in annual volume.
No date has been set for a ruling in the CME lawsuit.
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