CFTC Chair Michael Selig has defended crypto perpetual futures while stressing they are not suitable for agricultural markets, as regulated crypto perps continue expanding across U.S. venues.
Summary
- Michael Selig said crypto perpetual futures are not a natural fit for agricultural markets that rely on physical delivery.
- The CFTC and SEC have launched a joint review of swap definitions that could affect how crypto perpetuals are regulated.
- CBOE is evaluating crypto perpetual futures after Kalshi’s products generated more than $8.5 billion in trading volume.
According to remarks delivered by Selig at the American Cotton Shippers Association Annual Convention on Tuesday, the CFTC recognizes that 24/7 trading and perpetual futures structures are not well suited to traditional agricultural markets that depend on physical delivery and operate during limited trading hours.
Drawing a contrast between the agency’s historic role overseeing products ranging from corn to livestock and its newer responsibilities involving digital assets, Selig said perpetual contracts tied to cryptocurrencies are not appropriate for every asset class, particularly in agriculture.
While emphasizing those differences, Selig’s comments come only weeks after the CFTC approved Bitcoin perpetual futures contracts for prediction market platform Kalshi and issued a no-action position allowing similar products on Coinbase. Following those developments, crypto exchange Kraken also launched perpetual futures trading for U.S. customers through its CFTC-regulated platform Bitnomial.
Crypto perpetuals remain under regulatory review
Alongside the emergence of regulated crypto perpetuals, the CFTC and the Securities and Exchange Commission recently opened a joint public consultation seeking feedback on how U.S. regulations classify swaps, security-based swaps, mixed swaps, and related derivatives products.
As reported by crypto.news, the agencies said financial markets and trading practices have evolved since the original implementation of Title VII of the Dodd-Frank Act, prompting a review of whether current definitions still align with modern products. Comments will remain open for 60 days after publication in the Federal Register.
According to the agencies, the request covers jurisdictional questions, swap exclusions, alternative compliance frameworks, mixed swaps, and newly developed financial products. The review also includes event contracts and prediction market products that increasingly sit at the intersection of commodities and securities regulation.
Addressing the initiative, Selig said the consultation could help resolve what he described as longstanding ambiguities within Dodd-Frank. SEC Chair Paul Atkins separately stated that additional regulatory clarity is overdue, including for event-based products.
A key issue emerging from the review involves crypto perpetual futures, which differ from traditional futures contracts because they have no expiration date. As crypto.news previously reported, Kalshi’s Bitcoin perpetual futures were permitted to remain listed under existing futures rules, subject to compliance with the Commodity Exchange Act and CFTC regulations.
If regulators eventually classify crypto perpetuals as swaps rather than futures, platforms offering the products could face different requirements covering execution, reporting, clearing, and regulatory oversight.
Traditional exchanges are taking notice
Growing interest in regulated crypto perpetuals has also attracted attention from established exchange operators.
According to additional reporting, CBOE has begun evaluating whether its Bitcoin and Ether futures products could be converted into perpetual contracts after crypto perpetuals generated more than $8.5 billion in trading volume on Kalshi within weeks of launch.
At the same time, Selig’s handling of prediction markets and crypto perpetual approvals continues to face legal scrutiny. Last week, CME Group filed a lawsuit against the CFTC in the U.S. District Court for the District of Columbia, alleging that the agency’s approvals violated the Commodity Exchange Act.
Further uncertainty surrounds the agency itself. Despite calls from lawmakers to fill vacant seats, President Donald Trump has not appointed additional commissioners, leaving Selig as the CFTC’s sole commissioner and chair following Caroline Pham’s departure in December 2025.
Meanwhile, the U.S. Senate is expected to consider the Digital Asset Market Clarity Act in the coming weeks. According to lawmakers and industry participants, the legislation could redefine how regulatory responsibilities are divided between the CFTC and SEC for digital asset markets.