Crypto Leverage Trading a 'Major Problem', Says Former FTX US President

Core Insights - Brett Harrison, former president of FTX US, is launching a new perpetual futures exchange named Architect, which will not include crypto markets [1][3] - Harrison criticizes leveraged trading on volatile crypto assets as "irresponsible" and highlights concerns about excessive leverage in the crypto market following a significant market crash [2][5] Company Overview - Architect will offer perpetual futures on traditional stocks, foreign exchange markets, and rare metals, while allowing the use of stablecoins as collateral [3] - The exchange will initially be available to institutional investors, with plans to open to retail investors in the near future [3] Industry Context - Perpetual futures are derivative contracts with no expiration, allowing traders to leverage their positions on asset price movements [3][4] - High leverage ratios, such as 100 or 1000 times the initial capital, on volatile markets can lead to significant risks, including account liquidation [5][6]