The U.S. Commodity Futures Trading Commission (CFTC) released new guidance confirming that perpetual futures contracts can be classified as futures under existing law, a decision highlighted by CFTC senior official Mike Selig during the agency’s April 2025 public consultation.
Regulatory Clarifications
Selig dispelled several prevailing myths about perpetual futures, emphasizing that leverage caps and funding rates remain subject to the same oversight as traditional futures. He noted that the CFTC’s rule‑making process, which opened for comment in April 2025, attracted feedback from more than 100 industry participants, including investors and blockchain firms.
Legal Foundations
The Commodity Exchange Act does not expressly require futures contracts to possess a fixed expiration date, leaving interpretation to judicial precedent and prior CFTC rulings. Consequently, courts and regulators assess contracts based on their trading structure and risk profile, allowing perpetual instruments to fall within the futures definition when appropriate.
Implications for Investors
By affirming that perpetual contracts can be treated as futures, the CFTC provides clearer regulatory certainty for crypto investors and market makers alike. This alignment with Congressional intent aims to foster a more stable derivatives market while preserving the innovative potential of blockchain‑based trading products.