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CFTC chair Selig defends decision to approve ‘perps’ in U.S.
Commodity Futures Trading Commission (CFTC) Chair Michael Selig defended his agency’s approval of bitcoin perpetual futures in a Monday appearance on CNBC’s “Fast Money,” stating that incumbents always fear the future but the commission aims to onshore internationally developed products under robust U.S. regulations. “It’s time to approve regulated futures contracts that have no expiration date,” Selig said, emphasizing the need to ensure the product is well-regulated domestically. In late May, the CFTC approved prediction market platform Kalshi to offer bitcoin perpetual futures, or “perps”—contracts with no expiration date that allow speculation without owning the underlying asset. This marked the first time such contracts were allowed in the U.S., and Kalshi has since expanded offerings to other cryptocurrencies. Demand has been high: at a Thursday event, Kalshi reported over $3 billion in notional volume in just over a week of beta testing. Following the regulatory decision, CME Group CEO Terrence Duffy criticized the approval, citing concerns about high leverage and risk. However, Selig dismissed that argument, rejecting a paternalistic approach that favors one product type. “Options are very complicated,” he noted, adding that proper disclosure and broker evaluations will ensure suitability. Kalshi CEO Tarek Mansour pointed out that the maximum leverage on its perps is about six times—less than some CME futures contracts. Selig also denied that political pressure from President Donald Trump’s administration influenced the approval, calling such an insinuation “absolutely absurd.” Donald Trump Jr. is a strategic advisor to Kalshi. (CNBC and Kalshi have a commercial relationship involving customer acquisition and a minority investment.)