CFTC chair defends U.S. approval of perpetual futures

Commodity Futures Trading Commission Chair Michael Selig defended the agency’s recent approval of perpetual futures, or “perps,” in an appearance on CNBC’s Fast Money on Monday. Selig said the goal is to bring products that are already popular overseas into the U.S. under stricter domestic oversight, arguing that regulators should ensure they are developed and offered safely rather than left to foreign markets. The CFTC approved Kalshi in late May to offer bitcoin perpetual futures, a move that marked the first time the contract type was allowed in the U.S. Kalshi has since expanded the offering to other cryptocurrencies, and the company said beta testing has already generated more than $3 billion in notional volume. The decision drew criticism from CME Group CEO Terrence Duffy, who warned that the contracts can involve significant leverage and risk. Selig rejected concerns that the products are too complex for retail users, saying disclosure and broker suitability checks are meant to protect customers. He also dismissed suggestions that political pressure influenced the regulator’s decision.