world-economy

CFTC Chair Defends Perpetual Futures Approval as Domestic Regulatory Move

Commodity Futures Trading Commission Chair Michael Selig defended the agency's decision to approve perpetual futures contracts. He argued the move keeps emerging financial products under U.S. regulatory oversight rather than allowing them to develop overseas without safeguards.

Selig dismissed concerns that retail traders face disadvantages due to the complexity of perpetual futures contracts, which lack expiration dates and enable speculation on asset prices without owning underlying holdings. The CFTC approved prediction market platform Kalshi to offer bitcoin perpetual futures in late May, marking the first domestic authorization of the asset class.

Kalshi subsequently expanded into other cryptocurrencies and recorded more than $3 billion in notional volume during initial beta testing. CME Group CEO Terrence Duffy previously criticized the approval, citing leverage and risk concerns, but Selig rejected arguments for restricting product complexity.