CFTC’s Selig Says US Will Bring Crypto Perpetual Futures Under Regulation

Mike Selig, a commissioner at the US Commodity Futures Trading Commission, said the agency plans to bring crypto perpetual futures into the US regulatory framework.

In a June 11 interview with Fox Business, Selig said the CFTC would work on rules that would allow US investors to access perpetual futures products under US regulation instead of using offshore exchanges.

"The CFTC under my leadership is bringing crypto perpetual futures products back to the United States under a best-in-class regulatory framework," he said.

Perpetual futures are derivatives that trade without an expiration date and make up a substantial share of global crypto trading volume. In the US, however, regulatory issues have left the products largely concentrated on offshore exchanges.

Selig blamed the Biden administration’s regulatory approach for pushing the market overseas.

"The Biden administration pushed the perpetual futures market into offshore jurisdictions with no investor protection at all," he said. "That ultimately led to disasters like the collapse of FTX."

He added that popular financial products such as perpetual futures should be available to Americans under US law and regulation.

Selig also called for a clearer regulatory framework for the broader crypto industry.

"The crypto market has suffered from regulatory uncertainty for too long," he said. "It is important to create clear and predictable rules rather than regulation centered on enforcement."

Formal CFTC rules for perpetual futures could help expand the US crypto derivatives market and draw greater institutional participation, according to market participants.