CFTC Takes a Cautious Approach to Perpetual Contracts

The U.S. derivatives market regulator is not planning to automatically approve new perpetual contracts for trading. Instead, each product will be assessed individually, as different underlying assets carry different levels and types of risk.

This position was outlined by Michael Selig, Chairman of the Commodity Futures Trading Commission (CFTC), the U.S. agency responsible for overseeing futures and derivatives markets.

Perpetual contracts are a unique type of futures contract. Unlike traditional futures, they do not have a fixed expiration date, allowing traders to hold positions indefinitely. These instruments have been highly popular in the cryptocurrency market for years.

Selig’s comments have tempered expectations within parts of the industry. Following the approval of the first Bitcoin perpetual contract on May 29, many market participants anticipated a faster path toward approval for similar products tied to other assets.

However, the CFTC chairman emphasized that every contract requires its own detailed review. The risks associated with Bitcoin differ significantly from those linked to crude oil, commodities, or other underlying assets. In its statement, the regulator noted that perpetual contracts possess unique characteristics depending on the asset they track, making a one-size-fits-all assessment inappropriate.

The CFTC also expects exchanges to move away from self-certifying these products. According to the regulator, the complex structure of perpetual contracts and their potential impact on market stability and investor protection warrant closer regulatory scrutiny.

Additional concerns relate to the legal classification of perpetual contracts. Because they do not expire, there is ongoing debate over whether they should be treated as futures contracts or swaps. Selig pointed out, however, that futures contracts do not necessarily require a predetermined end date. Their classification has long been determined through legal precedent and CFTC oversight.

The global perpetual contracts market surpassed $60 trillion in value in 2025. While most trading activity has historically taken place outside the United States, the landscape is beginning to shift as regulated perpetual products enter the U.S. market.

According to Selig, the absence of a clear regulatory framework in the United States has for years pushed investors toward offshore trading platforms. As the CFTC’s only active commissioner, he currently holds significant influence over the pace of new product approvals and the regulator’s broader policy direction.