WASHINGTON, D.C. — Crypto perpetual futures have largely developed offshore because of the U.S. reluctance to pursue industry regulations, said U.S. Commodity Futures Trading Commission Chairman Mike Selig, and his agency will soon provide guidance on how that business should be handled.
Such derivatives contracts, which don't expire and are often associated with leverage, have been an area of high interest to the industry. U.S. exchange Kraken, for instance, recently announced a move into perpetual futures for tokenized stocks for non-U.S. users.
Selig's agency is "working towards getting professional futures, true professional futures here in the U.S. within the next month or so," he said at a Milken Institute event in Washington on Tuesday. "We expect to announce that very soon."
"The prior administration drove a lot of these firms and the liquidity offshore," he noted.
That was a theme of his remarks and those from his U.S. Securities and Exchange Commission counterpart, Chairman Paul Atkins. As they've often done lately to underline their shared mission on digital assets, which they call Project Crypto, the two appeared together on stage and highlighted their unified approach.
One of the things the two are pursuing are "innovation exceptions" to allow for crypto experimentation without fear of regulatory crackdown. Selig said they'll also soon define how decentralized finance (DeFi) developers are approached after years of prosecution and regulatory uncertainty.
Selig, who can act on his own because he's currently the only member on the CFTC's five-member commission, also said prediction markets — an overlapping cousin of the crypto sector — will get "guidance in the very near future" from the regulator. "We're going to be setting very clear standards." And he said the agency is also working on a more fulsome rulemaking process to soon give that position more permanent footing than guidance, which is procedurally easy to eliminate and rewrite.
Oversight of the events-contracts firms, including such leaders as Polymarket and Kalshi, is under dispute, with state gambling regulators pressing their own authorities over the firm's sports contracts. Selig stepped forward to combat that in courts, arguing the CFTC's position as a lead regulator of such firms' activities.
"They can exist in parallel," he said Tuesday of the two regulatory regimes.
Atkins, though, delved into one of the drawbacks of the regulators' current work: legal standing. Despite Atkins' earlier confidence that the SEC can forge ahead without new laws directing its crypto work, he said on Tuesday, "We really do need statutory certainty."
"We need the sense of Congress," he said.
A U.S. Supreme Court decision two years ago removed a significant degree of authority that federal regulators enjoyed in court disputes over their actions, so agencies going it alone on policy guidance doesn't carry the weight it once did. Agencies such as the SEC and CFTC can more easily be challenged, and their positions also easily reversed by future officials arriving at the commissions.
The U.S. Senate is still working on the Digital Asset Market Clarity Act that's meant to establish a regulatory system for the U.S crypto markets. That legislative effort remains jammed up in negotiations involving the industry, bankers, lawmakers from both parties and the White House. Its chances for passage in 2026 grow more difficult with each day, as midterm elections approach and available Senate floor time dwindles.
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