CFTC Chair Backs U.S. Approval of Perpetual Futures

CFTC Chairman Michael Silber said perpetual futures and similar derivatives are already widely established overseas, and U.S. regulators should move this activity into a compliant domestic framework instead of letting demand migrate to offshore venues. In an interview with CNBC, Silber said the agency supports the introduction of regulated futures contracts with no expiration date. He added that pushback from parts of the market is expected, but the regulatory priority is ensuring these products can be offered responsibly in the U.S. Perpetual futures, often called "perps", resemble traditional futures but do not have a set expiry. They allow traders to take directional exposure to an underlying asset's price without holding the spot asset, and they have long been common on non-U.S. crypto exchanges. Kalshi is the first U.S. platform to list the product. In late May, the CFTC cleared the prediction-market operator to launch bitcoin perpetual futures, marking the first time such a contract has been permitted in the U.S. market. Kalshi has since expanded its perpetual futures offerings to other crypto assets. Kalshi said its perpetual futures recorded more than $3 billion in notional trading volume in just over a week following a test launch, which it cited as evidence of strong demand. Addressing concerns about complexity and retail suitability, Silber said complexity alone is not a valid reason to ban a product. He said regulators will require comprehensive disclosures, and brokers will be expected to assess whether clients are suitable to participate. CME Group CEO Terrence Duffy has publicly criticized the approval of perpetual futures, arguing the contracts can involve high leverage and elevated risk. Kalshi CEO Tariq Mansour countered that the platform's current perpetual futures cap leverage at roughly 6x, which he said is lower than leverage on some CME futures products. Silber also rejected claims that politics influenced the decision. Critics have pointed to the fact that Donald Trump Jr., son of U.S. President Donald Trump, serves as a strategic advisor to Kalshi. Silber called it "absurd" to attribute the approval to political pressure. CNBC disclosed that it has a commercial partnership with Kalshi, including customer-acquisition collaboration and a minority equity investment.