Michael Selig, Acting Chairman of the U.S. Commodity Futures Trading Commission (CFTC) (Selig), said on June 23 at the annual meeting of the American Cotton Shippers Association in the United States that the all-day trading and no-expiration structure of crypto perpetual futures does not apply to agricultural commodity markets that rely on physical delivery and have limited trading hours. The CFTC and the SEC have jointly launched a public consultation on the definition of swap agreements, with a 60-day comment period after the publication of the Federal Register.
The joint consultation on swap agreement definitions by the CFTC and the SEC has been launched; 60-day comment period
The CFTC and the SEC have jointly initiated a public consultation, seeking input on how regulators should classify swap agreements, security-based swaps, mixed swaps, and related derivative products. In the consultation documents, the two agencies explain that since the initial implementation of Chapter 7 of the Dodd-Frank Act, financial markets and trading practices have changed, and the existing definitions need to be reexamined.
The scope of review includes: jurisdictional issues, swap transaction exemptions, alternative compliance frameworks, mixed swaps, newly developed financial products, and event contracts and prediction market products. SEC Chair Paul Atkins has also separately said that regulatory requirements for event-driven products need to be further clarified urgently. Selig said the consultation will help resolve long-standing ambiguities in the Dodd-Frank Act.
Under the current swap agreement framework, products classified as swaps are required to comply with execution location, mandatory clearing, and trade reporting requirements under the Dodd-Frank Act, which differ substantially from the current futures framework.
Kalshi’s crypto perpetual futures trading volume surpasses $8.5 billion; CBOE begins assessment
A few weeks after Kalshi launched Bitcoin perpetual futures, trading volume has already exceeded $8.5 billion. Against this backdrop, the Chicago Board Options Exchange (CBOE) has begun assessing whether its Bitcoin and Ethereum futures products can be converted into perpetual contracts. Kraken has also offered perpetual futures trading to U.S. customers via its CFTC-regulated platform Bitnomial.
CME Group sues in federal court over CFTC approval of Kalshi
Chicago Mercantile Exchange Group (CME Group) has filed a lawsuit in the U.S. District Court for the District of Columbia, alleging that the CFTC’s approval of Kalshi’s products violates the Commodity Exchange Act.
In terms of CFTC commissioner seats, Commissioner Carolyn Pham stepped down in December 2025, and U.S. President Trump has not yet appointed a new commissioner. Selig is currently the CFTC’s only commissioner and Acting Chairman. Lawmakers have publicly called to fill the vacancy.
Frequently Asked Questions
What are the key structural differences between crypto perpetual contracts and traditional agricultural futures?
Traditional agricultural futures have fixed expiration dates. Upon expiration, physical or cash settlement is performed according to the contract terms, and trading hours are limited. Crypto perpetual futures have no expiration date and use a funding rate mechanism to maintain the contract price by anchoring it to the spot price, supporting 24/7 trading. Selig’s remarks explicitly指出 that this all-day perpetual structure is incompatible with the physical delivery requirements of agricultural commodities.
What product categories are covered by the joint consultation on swap agreement definitions by the CFTC and the SEC?
This review covers swap agreements, security-based swaps, mixed swaps, newly developed financial products, as well as event contracts and prediction market products. The two agencies specifically point out that some emerging products fall into the intersection of commodity and securities regulation, and that the existing classification framework of the Dodd-Frank Act needs to be updated to address these products.
What is the legal basis for CME Group’s lawsuit?
In its lawsuit filed in the U.S. District Court for the District of Columbia, CME Group alleges that the CFTC’s approval decision for Kalshi’s Bitcoin perpetual futures products violates relevant provisions of the Commodity Exchange Act. CME Group is one of the largest derivatives exchange operators globally and itself also provides CFTC-regulated Bitcoin futures products.
