TLDR
- CFTC Chair Michael Selig announced a US crypto perpetual futures framework arriving “within the next month or so”
- The regulatory framework will establish structure, oversight standards, and registration protocols for crypto derivatives
- The majority of crypto perpetual futures activity occurs offshore due to domestic regulatory uncertainty
- CFTC plans to release prediction market guidance in the “near future”
- Negotiations continue on the Digital Asset Market Clarity Act between Congress, industry stakeholders, and the White House
The US Commodity Futures Trading Commission plans to roll out regulations for crypto perpetual futures contracts, CFTC Chair Michael Selig confirmed.
Selig delivered these remarks during a Milken Institute panel held in Washington, DC on Tuesday. SEC Chair Paul Atkins joined him on the panel.
Perpetual futures represent a derivative instrument allowing traders to speculate on cryptocurrency prices with no expiration date. These products have become staples in global crypto markets while lacking defined US regulatory oversight.
Selig stated the CFTC aims to establish “true perpetual futures” within the United States. He provided a timeline of roughly one month.
He pointed to the previous administration as the source of the current regulatory vacuum. Selig explained that earlier regulatory ambiguity drove companies and market liquidity to foreign jurisdictions.
The upcoming framework will establish structural requirements and registration criteria that firms must satisfy. The CFTC intends to provide clear guidelines for US-based market participants.
Prediction Markets Also Getting Guidance
Beyond perpetual futures, the CFTC is developing guidance for prediction markets. Selig indicated that standards governing event-based contracts would arrive in the near future.
Prediction market platforms such as Kalshi and Polymarket have encountered enforcement actions at the state level. The CFTC has contested those actions, asserting federal authority over event contracts.
A coalition headed by Rep. Mick Mulvaney seeks stricter oversight of prediction markets. They contend these platforms create ambiguity between investing and gambling.
The CFTC asserts these contracts belong under federal jurisdiction as commodity-based derivatives.
Crypto Market Structure Bill Still Stalled
Atkins informed the panel that the SEC requires statutory direction from Congress. He referenced a Supreme Court decision from two years prior that diminished deference to federal agencies, increasing vulnerability to legal challenges.
“There’s only so much you can do without legal certainty from Congress,” Selig said.
The Digital Asset Market Clarity Act, which would allocate regulatory authority between the SEC and CFTC, remains unresolved. Discussions continue among crypto industry groups, banking representatives, and the White House.
As of Tuesday, the Senate Banking Committee had yet to schedule a markup session for the legislation.
The White House recently conducted discussions with industry leaders regarding stablecoin yield. Whether those conversations would accelerate legislative action remained uncertain.
The CFTC currently operates with just one Senate-confirmed commissioner. Selig serves as the sole confirmed member, leaving four positions vacant with no nominations announced.
