CFTC Chairman Mike Selig said the agency is preparing to introduce a regulatory framework for US crypto perpetual futures within weeks. Selig said the agency expects to make an announcement soon, with a rollout targeted within the next month or so.
CFTC Moves to Approve US Crypto Perpetual Futures
He made the remarks during his public appearance at the Milken Institute event in Washington. In his remarks, Selig said that crypto perpetual futures markets have largely developed outside the United States. This was mainly due to the regulatory uncertainty in the country.
Current efforts at the CFTC are aimed at establishing what Selig described as “true professional futures” in the domestic market. The agency plans to clarify how US crypto perpetual futures will be structured and regulated.
The framework will include the parameters and requirements for registration. This will mark a significant shift in the way crypto derivatives are managed in the United States.
Selig was also present alongside the SEC Chairman Paul Atkins, who emphasized the need for coordination between the two agencies. As CoinGape reported, US regulators are moving toward closer coordination on digital asset oversight, including a proposed memorandum of understanding (MoU) between the SEC and CFTC to position the United States as the global leader in crypto markets.
A key part of the process has been the development of “innovation exceptions.” This would allow limited experimentation in crypto markets without immediate enforcement risk. Regulators described it as an important part of the broader framework.
CFTC Prepares Guidance For Prediction Markets
In addition to US crypto perpetual futures, the CFTC is preparing guidance on prediction markets. Selig said that standards for event-based contracts are to be issued in the near future. He also said that a more comprehensive process is in the making to ensure the long-term stability of these contracts.
The jurisdiction over platforms offering event contracts is also a matter of dispute. A newly formed group is pushing for a crackdown on prediction markets. Led by Rep. Mick Mulvaney (R-S.C.), it argues these platforms blur the line between investing and gambling. Federal regulators have said these fall within their purview because they are derivatives focused on commodities.
Legal constraints were discussed at the meeting. Atkins said statutory certainty from Congress is still needed to solidify crypto regulation. He also noted that a Supreme Court ruling two years ago reduced judicial deference toward federal agencies, increasing the risk of legal challenges.
The Digital Asset Market Clarity Act is still in the process of being negotiated to determine the boundaries between the SEC and the CFTC. This bill is still in limbo as negotiations continue with crypto industry groups, banking representatives, and the White House.
