Terry Duffy, CEO of CME Group (CME Group), warned that U.S. perpetual futures contracts face an overlooked tax risk.Currently, a legal battle is underway in the U.S. over whether perpetual futures should be classified as “swaps” or “futures,” and the outcome could affect how the Internal Revenue Service (IRS) taxes these contracts.Duffy believes that if perpetual futures are deemed to be swaps—rather than futures, as the Commodity Futures Trading Commission (CFTC) currently classifies them—traders, particularly institutional investors, could face unexpected tax and regulatory uncertainties, as this could prevent them from benefiting from the more favorable hybrid tax rate provided under Section 1256 of the U.S. tax code.