CFTC chairman Michael Selig has defended the future of crypto perpetuals while insisting that they are not suitable for agricultural markets, as regulated crypto perps continue to spread throughout the US.
Summary
- Michael Selig said that perpetual crypto futures are not a natural fit for agricultural markets that rely on physical delivery.
- The CFTC and the SEC have launched a joint review of proposed changes that could impact how crypto perpetuals are regulated.
- CBOE examines permanent crypto 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 structures and perpetual futures are not well suited to traditional agricultural markets that rely on physical delivery and operate on limited trading hours.
Drawing a contrast between the agency’s historic role of overseeing products ranging from corn to livestock and its new responsibilities involving digital assets, Selig said perpetual contracts tied to cryptocurrency are inappropriate for all commodities, especially agriculture.
Although he emphasized that distinction, Selig’s comments come weeks after the CFTC approved Bitcoin futures contracts for the Kalshi prediction market platform and issued a passive position allowing similar products on Coinbase. Following those developments, crypto exchange Kraken has also introduced permanent trading for US customers through its CFTC-regulated Bitnomial platform.
Crypto perpetuals are always subject to 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 US rules classify swaps, security-based swaps, hybrid swaps, and related derivative products.
As reported by crypto.news, the agencies said that financial markets and trading practices have changed since the initial implementation of Title VII of the Dodd-Frank Act, making a review of whether the current definitions are still relevant to modern products. Comments will remain open for 60 days after publication in the Federal Register.
According to the agencies, the request includes questions related to the law, modified issuance, other compliance structures, mixed exchanges, and newly developed financial products. The review also includes event contracts and fixed-term speculative market products at the intersection of asset management and securities.
Speaking about the plan, Selig said the consultation could help resolve what he described as a long-standing ambiguity in Dodd-Frank. SEC chairman Paul Atkins said separately that more regulatory clarity was overdue, including for event-based products.
A key issue from the review involves perpetual crypto futures, which differ from traditional futures contracts in that they do not have an expiration date. As crypto.news previously reported, Kalshi’s perpetual Bitcoin futures are allowed to remain listed under existing futures rules, subject to compliance with the Securities Exchange Act and CFTC rules.
If regulators eventually classify crypto perpetuals as swaps instead of futures, platforms offering the products could face different requirements including execution, reporting, clearing, and regulatory oversight.
Traditional conversations are conscious
The growing interest in regulated crypto perpetuals has also drawn the attention of established exchange operators.
According to an additional report, the CBOE has begun evaluating whether its Bitcoin and Ether futures products can 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 the prediction markets and the endless approval of crypto continue to face legal scrutiny. Last week, CME Group filed a lawsuit against the CFTC in the US District Court for the District of Columbia, alleging that the agency’s approval violates the Securities Exchange Act.
Some uncertainty surrounds the agency itself. Despite calls from lawmakers to fill vacant seats, President Donald Trump has yet to appoint additional commissioners, leaving Selig as the sole commissioner and chair of the CFTC following the departure of Caroline Pham in December 2025.
Meanwhile, the US Senate is expected to consider the Digital Assets Market Transparency Act in the coming weeks. According to lawmakers and industry participants, the legislation could redefine how regulatory responsibilities are divided between the CFTC and the SEC for digital asset markets.
