TLDR: Selig clarifies perpetual futures lack statutory expiration requirements under US law and rely on case interpretations. CFTC interpretations guide classification rules for perpetual fut
Mike Selig addressed growing misconceptions surrounding perpetual futures contracts and recent Commodity Futures Trading Commission approvals. Selig outlined several common myths and provided clarifications on how CFTC rules apply to perpetual futures structures.
His remarks covered leverage limits, funding rates, and the regulator’s public consultation process in April 2025. The clarification follows increased debate over crypto derivatives design and regulatory alignment in US markets.
According to Selig, the Commodity Exchange Act does not explicitly define futures contracts as requiring expiration dates. This absence leaves interpretation to judicial precedent and regulatory practice.
Case law and CFTC interpretations instead guide classification of futures contracts in the absence of statutory definitions. These interpretations vary based on trading structure and risk characteristics.
Officials emphasized that perpetual duration does not automatically exclude an instrument from being treated as a futures contract. This distinction has become central to recent derivatives market debates.
The clarification responds to concerns that perpetual futures structures conflict with Congressional intent under existing law. It also addresses concerns raised during recent industry consultations.
Selig referenced the April 2025 CFTC request for comment on perpetual contracts and 24/7 trading. Over 100 stakeholders submitted feedback across industry and market participants.
Market participants continue to assess how classification clarity may affect product listings and exchange design. Exchanges may adjust offerings based on regulatory interpretation updates.
There have been misconceptions circulating around perpetual futures contracts.
I want to correct the record on these important matters related to the perpetual contract structure and the @CFTC’s recent approvals of these contracts.
— Mike Selig (@ChairmanSelig) June 15, 2026
CFTC-regulated perpetual futures are subject to the same leverage limits as standard futures contracts. This applies across all listed derivatives under CFTC oversight.
High leverage often seen in offshore markets reflects venue design rather than the perpetual contract structure itself. Offshore platforms historically allowed extreme leverage not permitted domestically.
Funding rates help align perpetual futures prices with spot markets by incentivizing balance between traders. This mechanism prevents persistent divergence from underlying spot prices.
Officials noted that carrying costs may be comparable to traditional expiry-based futures when fully accounted for. It also reflects cost structures similar to rolling expiring contracts.
Industry observers track how funding mechanisms shape perpetual futures pricing behavior over time. This remains a key focus in derivatives market microstructure studies.
Regulatory alignment between offshore and US markets continues to influence product standardization efforts. This includes leverage caps and pricing consistency requirements.
Analysts note that perpetual futures remain one of the most actively traded crypto derivatives globally. Trading volumes continue to concentrate on major digital asset exchanges. Regulatory clarity may further support institutional participation.
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