The United States Is Finally Obtaining Crypto Perpetual Futures — Here’s What We Know

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TLDR

  • CFTC Chair Michael Selig states that a framework for US crypto perpetual futures is set to arrive “within the next month or so”.
  • The rules will encompass the structure, oversight, and registration requirements for crypto derivatives.
  • Currently, most crypto perpetual futures trading takes place outside the US because of regulatory gaps.
  • The CFTC is also getting ready to provide guidance on prediction markets in the “near future”.
  • The Digital Asset Market Clarity Act is still stuck in negotiations among Congress, the industry, and the White House.

According to CFTC Chair Michael Selig, the US Commodity Futures Trading Commission is preparing to introduce rules for crypto perpetual futures contracts.

Selig made these remarks at a Milken Institute panel in Washington, DC on Tuesday. He was present alongside SEC Chair Paul Atkins.

Perpetual futures are a kind of derivative that allows traders to bet on crypto prices without an expiration date. They are widely used in global crypto markets but have not had a clear regulatory framework in the US.

Selig said that the CFTC is working towards establishing “true perpetual futures” in the United States. He set a timeline of within the next month or so.

He blamed the current gap on the previous administration. Selig said that prior regulatory uncertainty drove firms and liquidity offshore.

The new framework will define how these contracts are structured and what registration standards firms need to meet. The CFTC plans to clarify the rules for domestic market participants.

Prediction Markets Also Getting Guidance

Along with perpetual futures, the CFTC is preparing guidance for prediction markets. Selig said that standards for event – based contracts would be issued in the near future.

Prediction market platforms like Kalshi and have faced state – level enforcement actions. The CFTC has pushed back against those, claiming federal jurisdiction over event contracts.

A group led by Rep. Mick Mulvaney is advocating for a crackdown on prediction markets. They argue that the platforms blur the line between investing and gambling.

The CFTC maintains that these contracts fall under federal authority as commodity – focused derivatives.

Crypto Market Structure Bill Still Stalled

Atkins told the panel that the SEC still requires statutory clarity from Congress. He said that a Supreme Court ruling two years ago reduced deference to federal agencies, increasing the risk of legal challenges.

“There’s only so much you can do without legal certainty from Congress,” Selig said.

The Digital Asset Market, which would divide regulatory responsibilities between the SEC and CFTC, remains in an undecided state. Negotiations are ongoing with crypto industry groups, banking representatives, and the White House.

As of Tuesday, the Senate Banking Committee had not scheduled a markup session for the bill.

The White House recently held talks with industry leaders on stablecoin yield. It’s still unclear whether those discussions will lead to legislative progress.

The CFTC currently has only one Senate – confirmed commissioner. Selig is the only confirmed member, with four positions vacant and no nominations announced.