In a significant industry critique, former FTX US President Brett Harrison has identified leveraged cryptocurrency trading as a fundamental vulnerability within digital asset markets. Harrison, who now leads decentralized trading platform Architect, characterized the widespread availability of high-leverage products as creating substantial systemic risks that have repeatedly manifested during market downturns.
The industry veteran’s comments come as he prepares to launch a perpetual futures exchange focused exclusively on traditional financial assets. This strategic pivot aims to replicate certain crypto market innovations while avoiding what Harrison describes as the excessive risk profiles prevalent in digital asset derivatives. The new platform will offer exposure to conventional instruments including equities, commodities, and indices through perpetual contracts, a derivative structure popularized in cryptocurrency markets.
Harrison’s perspective carries particular weight given his previous leadership role at one of the industry’s largest derivatives exchanges before its collapse. His new venture represents a deliberate shift toward regulated traditional finance products, reflecting growing concerns about risk management practices in cryptocurrency trading environments. The move signals an emerging trend of financial technology innovators seeking to bridge crypto market efficiencies with established regulatory frameworks.
