CFTC Chair Defends First U.S. Approval of Cryptocurrency Perpetual Futures Contracts]

Commodity Futures Trading Commission Chairman Michael Selig defended his agency’s decision to approve cryptocurrency perpetual futures in the United States during a Monday appearance on CNBC’s “Fast Money.”

Selig argued that regulatory oversight can accommodate newer financial products, emphasizing the CFTC’s goal of bringing offshore innovations under domestic control. “It’s time to approve regulated futures contracts that have no expiration date,” he stated. “We’re going to make sure the product’s available, but it’s well regulated here in the U.S.”

In late May, the CFTC approved prediction market platform Kalshi to offer bitcoin perpetual futures—contracts without expiration dates that enable price speculation without requiring ownership of the underlying asset. This marked the first time the asset class became available in the U.S. following its popularity in international markets. Kalshi has since expanded its perp offerings to additional cryptocurrencies.

Demand for these contracts has been robust. Kalshi reported over $3 billion in notional trading volume within just over a week of beta testing for its perps product.

CME Group CEO Terrence Duffy expressed concerns about the approval, citing leverage risks associated with the contracts. However, Selig countered that regulatory frameworks already manage complex products like options, and that proper disclosure requirements would be enforced. He emphasized that broker-dealers remain responsible for customer suitability assessments.

Kalshi CEO Tarek Mansour previously noted that the platform’s maximum leverage of approximately six times is lower than some leverage levels available in CME’s existing futures contracts.

Selig also rejected suggestions that political pressure from the Trump administration influenced the decision, dismissing such claims as “absolutely absurd.”

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