The U.S. Commodity Futures Trading Commission (CFTC) has pushed back against several criticisms of perpetual futures contracts, as regulators continue to shape rules for digital asset markets in the United States.
In a recent post on X, CFTC Chair Michael Selig addressed four common concerns about perpetual futures. His comments referenced more than 100 public submissions received during a 2025 consultation process focused on perpetual contracts and 24/7 trading.
Perpetual futures’ unique funding mechanism and lack of expiry have made the product popular offshore, where limited regulations apply.
Under my chairmanship, the @CFTC is bringing perpetuals onshore under a robust regulatory framework.
More form my conversation on… pic.twitter.com/J7UGlaBDvE
— Mike Selig (@ChairmanSelig) June 15, 2026
Do perpetual futures need an expiration date?
One of the biggest criticisms is that perpetual futures should not qualify as futures contracts because they do not have a fixed expiration date. Selig said U.S. law does not require a futures contract to expire on a specific date. According to him, neither the Commodity Exchange Act nor existing CFTC regulations define futures contracts in a way that makes an expiration date mandatory.
Instead, courts and regulators determine whether a product qualifies as a futures contract based on broader legal standards. Selig argued that those standards do not require a contract to have a set maturity date.
There have been misconceptions circulating around perpetual futures contracts.
I want to correct the record on these important matters related to the perpetual contract structure and the @CFTC’s recent approvals of these contracts.
🧵👇
— Mike Selig (@ChairmanSelig) June 15, 2026
What did the CFTC say about 250x leverage claims?
Another concern centred on claims that recently approved perpetual futures products could allow U.S. traders to access leverage of up to 250 times their capital.
Selig rejected that interpretation. He said extremely high leverage is typically associated with offshore crypto exchanges rather than regulated U.S. futures markets.
According to the CFTC chair, perpetual futures operating under the agency’s oversight remain subject to the same leverage and risk management rules that apply to other regulated futures products in the United States.
More than 100 public comments shaped the review
Questions have also been raised about whether the industry had enough input before perpetual futures received regulatory approval.
Selig pointed to an April 2025 request for comment that covered both perpetual contracts and around-the-clock trading. The consultation received more than 100 responses from exchanges, trading firms, and other market participants.
The debate highlights the growing importance of perpetual futures in crypto markets. As regulators review new digital asset products, the discussion is increasingly shifting from whether perpetual contracts should exist to how they should operate within existing financial rules.
Meanwhile, CFTC is preparing a new regulatory framework for prediction markets, a move that could have significant implications for crypto-based platform Polymarket and rival exchange Kalshi.
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