CFTC Chair Michael Selig tackles perpetual futures ‘misconceptions’

Summary

CFTC Chair Michael Selig defends the agency's approval of perpetual futures contracts, arguing they fit existing legal frameworks, are not influenced by politics, and will bring offshore innovation into regulated US markets. He outlines plans to evaluate perpetuals for other asset classes on a case-by-case basis.

• Selig rejects claims that perpetual futures don't fit the definition of a futures contract.
• He states the Commodity Exchange Act does not define 'futures contract,' and courts interpret the term broadly.
• Perpetual futures have been available offshore; bringing them onshore prevents U.S. traders from going overseas.
• The CFTC has approved perpetual futures for crypto and will assess other assets individually.
• Selig denies any political pressure or connection to Donald Trump Jr.'s roles at Kalshi and Polymarket.
• The CFTC aims for responsible innovation, ensuring investor protections and proper disclosures.
• Selig sees the accuracy of offshore platforms like Hyperliquid as a reason to move faster with U.S. regulation.