Commodity Futures Trading Commission (CFTC) Chairman Michael Selig on Tuesday acknowledged fundamental differences between the traditional commodities markets it has long regulated and its more recent role overseeing aspects of the cryptocurrency and blockchain industry.
He said the American Cotton Shippers Association’s annual convention that, given the agency’s roots in overseeing asset classes ranging from corn to pork bellies, perpetual contracts tied to digital assets were not “suitable for all asset classes, particularly in commodities like agriculture.”
“We fully recognize and understand that 24/7 trading and the perpetual model are not a natural fit for traditional commodity markets, like agriculture, which observe limited trading hours and rely on physical delivery,” Selig said.
A word from the president of the CFTC followed agency approving perpetual futures contracts linked to the Bitcoin spot price for prediction markets platform Kalshi and issuing a no-action position for similar products on cryptocurrency exchange Coinbase in May. Kraken also subsequently launched perpetual futures trading for US users through its CFTC-regulated Bitnomial platform.
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Selig’s position as sole commissioner at the CFTC, both asserting that the agency has “exclusive jurisdiction” to oversee prediction markets and approving crypto perpetual futures contracts, has provoked a legal backlash from many companies and state-level authorities. Last week, the Chicago Mercantile Exchange (CME) group sued the agency in the District of Columbia, alleging that perpetual contract approvals violated the Commodity Exchange Act.
Trump still hasn’t appointed any commissioners
Despite the insistence of many American legislatorsPresident Donald Trump has taken no action to complete the CFTC’s panel of five leaders. Selig is the only Republican commissioner and president after Caroline Pham leaves office in December 2025.
The U.S. Senate is expected to vote on the Digital Asset Market Clarity (CLARITY) Act in a few weeks, which could change the roles of the CFTC and the Securities and Exchange Commission in overseeing digital assets.
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