CFTC Chair Michael Selig drew a clear line between crypto derivatives and traditional commodities this week, telling US cotton producers that perpetual futures aren’t a “natural fit” for agriculture.
Speaking at the American Cotton Shippers Association Annual Convention, Selig acknowledged the agency’s roots in overseeing everything from corn to hog bellies — markets that rely on limited trading hours and physical delivery. “We fully recognize and understand that 24-7 trading and the perpetual model is not a natural fit for traditional commodity markets, like agriculture,” he said.
The comments come right after the CFTC approved perpetual futures contracts tied to Bitcoin spot prices for prediction markets platform Kalshi, and issued a no-action position for similar products on Coinbase in May. Kraken also launched perpetual futures trading for US users through its CFTC-regulated Bitnomial platform.
But Selig’s aggressive stance on claiming “exclusive jurisdiction” over prediction markets has pushed the Chicago Mercantile Exchange to sue the agency in DC, alleging the perpetual contract approvals violate the Commodity Exchange Act.
Meanwhile, the CFTC is running with a single commissioner. President Trump hasn’t nominated anyone to fill the remaining four seats on the five-person panel. The Senate is expected to vote on the Digital Asset Market Clarity Act in the coming weeks, which could reshuffle how the CFTC and SEC oversee digital assets.
