US regulators are moving toward formal rules for crypto perpetual futures, signalling a shift that could reshape how digital asset derivatives trade globally.
CFTC Chair outlines imminent framework for perpetual futures
Michael Selig, Chair of the Commodity Futures Trading Commission (CFTC), confirmed that a regulatory framework for crypto perpetual futures should be unveiled in the United States “within the next month or so.” He spoke on Tuesday during a Milken Institute panel in Washington, DC, where he appeared alongside SEC Chair Paul Atkins.
Perpetual futures are a type of derivative contract that allows traders to speculate on cryptocurrency prices without any fixed expiration date. These instruments have seen strong adoption on overseas crypto exchanges. However, they have long operated without clear federal oversight in the US, leaving both platforms and institutional investors in a grey area.
During his remarks, Selig reiterated the CFTC’s objective of establishing “true perpetual futures” for American markets and projected implementation in roughly 30 days. Moreover, he stressed that the commission intends to bring trading volumes back onshore by creating a coherent regulatory structure that large market participants can trust.
The CFTC Chair blamed the current regulatory vacuum on decisions by the prior administration. According to Selig, earlier uncertainty over rules and enforcement pushed both firms and trading activity to offshore venues, where lighter standards and higher leverage have become the norm.
The new rulebook will set structural parameters for contract design and operational requirements for derivatives venues. In particular, the agency expects to define compliance obligations for US-registered trading firms and clarify registration routes for venues listing perpetual crypto contracts. That said, market participants will likely face stricter risk controls and detailed reporting duties once the framework goes live.
Bringing offshore perpetual trading activity back onshore
Today, the bulk of perpetual futures liquidity resides on offshore platforms that accept US users either indirectly or via loopholes. This reflects the absence of domestically approved structures for these products. However, Selig suggested that once federal clarity is in place, sophisticated firms may prefer regulated US venues over lightly supervised foreign exchanges.
The emerging framework for crypto perpetual futures us trading is expected to cover leverage limits, margin methodologies, and liquidation procedures. Moreover, it should outline how clearing and settlement must operate when contracts never expire. Industry lawyers believe this could eventually set a template for other jurisdictions assessing crypto derivatives oversight.
CFTC moves toward prediction market standards
Beyond perpetual instruments, the CFTC is also drafting guidance for prediction market operators. Selig signalled that standards for event-driven contracts should arrive in the “near future,” indicating that the commission wants to define what forms of political or economic event betting fall within its remit.
Platforms such as Kalshi and Polymarket have already faced regulatory pushback at the state level. However, the CFTC has challenged these actions, arguing that event-based contracts structured as derivatives fall under its federal commodity authority, not under disparate state gambling codes.
A coalition led by Representative Mick Mulvaney is pressing for tighter prediction market regulation. Their argument focuses on the line between legitimate hedging activity and outright gambling, and whether these platforms can distort public perception around elections or macroeconomic events.
The CFTC maintains that such contracts should be supervised as commodity-linked derivatives when they are centrally cleared and margined. Moreover, the commission contends that unified federal rules would create more consistent protections for retail traders than a fragmented state-by-state approach.
Digital asset legislation gridlocked in Congress
Atkins told the panel that the SEC continues to require explicit legislation from Congress to finalize a more robust framework for digital asset markets. He referenced a Supreme Court decision from two years ago that reduced judicial deference to federal regulators, increasing agencies’ exposure to lawsuits when they stretch their mandates.
“Without congressional certainty on the legal framework, our options remain limited,” Selig said, echoing broader concerns among policymakers about acting without updated statutes. Moreover, he warned that prolonged ambiguity could further incentivize market infrastructure to develop beyond US borders.
The Digital Asset Market Clarity Act aims to divide responsibilities between the Securities and Exchange Commission and the Commodity Futures Trading Commission. It is designed to determine which assets qualify as securities and which fall under commodities law. However, the bill has stalled amid negotiations involving crypto industry representatives, major banks, and White House officials.
As of Tuesday, the Senate Banking Committee had not yet scheduled a markup hearing for the legislation. That delay underscores how contentious the question of digital asset legislation remains, even as trading volumes and institutional interest continue to rise.
Recent White House meetings with sector executives have focused on the mechanics of stablecoin yields and their implications for banking regulation. Whether those discussions will translate into a breakthrough on the market clarity act or adjacent bills remains uncertain, given broader political tensions around financial regulation in an election-sensitive environment.
Leadership gaps at the CFTC raise implementation questions
The CFTC is currently operating with just one Senate-confirmed commissioner, leaving four seats vacant. Selig is the only confirmed member, an unusual configuration that raises questions about the pace and scope of forthcoming rulemaking, including the finalization of the new perpetual futures framework.
Nonetheless, staff at the commission have continued preparatory work on crypto derivatives oversight and event-contract standards. Moreover, market participants expect the agency to rely heavily on existing commodity derivatives precedent when shaping new digital asset rules, even in the absence of a fully staffed commission.
In summary, the CFTC’s push to launch a clear regulatory regime for crypto perpetual futures within weeks, while advancing prediction market guidance and awaiting stalled federal legislation, signals a pivotal moment for US digital asset governance.