CFTC chair says perp trading not suitable for all assets it regulates
CFTC Chair Michael Selig said the agency’s traditional oversight of physical commodity markets is fundamentally different from its newer role in crypto. He said perpetual crypto futures and 24/7 trading do not fit agriculture and other commodities that have limited trading hours and rely on physical delivery. His remarks came after the CFTC approved Bitcoin-linked perpetual futures for Kalshi and issued a no-action position for similar Coinbase products, with Kraken later offering perpetual futures through Bitnomial. Selig’s solo leadership and the agency’s moves on crypto and prediction markets have drawn legal challenges, including a CME lawsuit claiming the approvals violated the Commodity Exchange Act. The CFTC still lacks additional commissioner nominees from President Donald Trump, and Congress may soon consider the CLARITY Act, which could reshape CFTC and SEC authority over digital assets.
