Full story
Perps vs. Commodities
CFTC Chair Michael Selig told the American Cotton Shippers Association Annual Convention that crypto perpetual contracts may not be a “natural fit for traditional commodity markets, like agriculture.”
“Commodity Futures Trading Commission (CFTC) Chair Michael Selig on Tuesday acknowledged fundamental differences in the traditional commodity markets it has long regulated and its more recent role overseeing aspects of the cryptocurrency and blockchain industry”
Selig said the agency “fully recognize[s] and understand[s] that 24-7 trading and the perpetual model is not a natural fit for traditional commodity markets, like agriculture, that observe limited trading hours and rely on physical delivery.”
His remarks came after the CFTC approved perpetual futures contracts tied to the spot price of Bitcoin for prediction markets platform Kalshi and issued a no-action position for similar products on cryptocurrency exchange Coinbase in May.
The CFTC’s crypto oversight has also been tied to Kraken launching perpetual futures trading for US users through its CFTC-regulated platform Bitnomial.
Legal Fight and Policy
Selig’s stance as sole commissioner and chair, including the claim that the agency has “exclusive jurisdiction” in overseeing prediction markets and approving crypto perpetual futures, has prompted legal backlash from many companies and state level authorities.
Last week, the Chicago Mercantile Exchange (CME) Group sued the agency in the District of Columbia, alleging that the perpetual contract approvals violated the Commodity Exchange Act.
The CFTC chair’s comments also landed as President Donald Trump made no move to fill out the CFTC’s five-person leadership panel, leaving Selig as the only Republican commissioner and chair after Caroline Pham’s departure in December 2025.
The US Senate is expected to take up a vote on the Digital Asset Market Clarity (CLARITY) Act in a matter of weeks, which could change the roles of the CFTC and Securities and Exchange Commission in overseeing digital assets.
Energy Perpetuals Consultation
The CFTC opened a public consultation on 24/7 futures trading and perpetual contracts linked to physically delivered energy commodities such as crude oil, with the review potentially expanding the perpetual futures model beyond crypto markets.
“The Commodity Futures Trading Commission opened a public consultation on 24/7 futures trading and perpetual contracts linked to physical energy commodities”
In the consultation, the CFTC asked how standard futures contracts would operate on a 24/7 schedule without changing expiry or settlement terms and how perpetual contracts would function when linked to physical commodities that involve storage and delivery costs.
The agency said comments will be accepted for 30 days after publication in the Federal Register and will be used to inform future policy considerations, while “Following the announcement no rule changes or new contracts were approved.”
The consultation followed the CFTC’s recent approval of regulated perpetual Bitcoin futures and its broader examination of how perpetual contract structures could apply to other asset classes.
