CFTC Chair Selig Backs 'Perps' Approval for US Markets
CFTC Chair Michael Selig defends greenlighting perpetual futures in the US, arguing domestic development beats ceding ground offshore.
The CFTC just made a move that's going to shake up crypto derivatives trading, and Chair Michael Selig isn't backing down from it. Selig went on record defending the agency's decision to approve so-called 'perps' — perpetual futures contracts — for US markets. If you've traded crypto offshore, you already know how massive this product category is. Now it's coming home.
Selig's core argument is straightforward: incumbents always push back against new asset classes because disruption threatens them. That's not a reason to say no. It's actually the reason regulators need to step up and build the framework domestically before the whole market migrates to jurisdictions with zero guardrails.
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The 'offshore vs. onshore' tension is the real story here. US traders have been using perpetual futures on foreign exchanges for years — completely outside CFTC oversight. Selig's position is essentially that regulatory avoidance isn't a win for consumer protection. Bringing perps under the CFTC umbrella means rules, surveillance, and accountability that simply don't exist when American retail traders log into offshore platforms.
For active traders, this is a watershed moment. Perpetual futures are the dominant instrument in crypto derivatives globally, with notional volumes that dwarf traditional crypto spot markets. Having a US-regulated version changes the risk calculus entirely — think tighter spreads, real backstops, and potentially institutional liquidity you don't get in the wild west offshore.
Selig's willingness to take heat from established players signals the CFTC is in an expansionary mindset when it comes to digital assets. Whether Congress backs that posture with actual legislation remains the open question. Continue reading at US Top News and Analysis.
