On 6 August 2026, US Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig outlined his approach to financial innovation and international derivatives regulation. In an opinion piece published by The Economist, Chairman Selig addressed crypto assets, stablecoins, perpetual futures and prediction markets. He stated that regulatory frameworks must evolve alongside increasingly automated and technology driven financial markets. The Chairman also advocated continued cross border cooperation, while questioning reliance on international regulatory consensus where approaches diverge from developments in US markets. His remarks identify regulated crypto derivatives as part of the wider evolution of US capital markets. They also address potential stablecoin use as derivatives collateral and the development of perpetual futures beyond crypto assets. The remarks represent the Chairman's policy views and do not themselves establish new CFTC rules or regulatory requirements.1
CFTC Chairman Sets Out Approach to the Next Era of Derivatives Markets
Chairman Selig described global derivatives markets as entering a new technological phase. He noted that derivatives now represent more than $1.2 quadrillion in notional value, with nearly half falling within the CFTC's jurisdiction.1 His remarks elaborate on the changing infrastructure through which these markets operate. Traditional trading environments have increasingly given way to automated trading, artificial intelligence, algorithmic execution and real time decision making.
Chairman Selig stated that derivatives markets have evolved into:
"increasingly autonomous ecosystems driven by automated trading, artificial intelligence, algorithmic execution and real-time decision-making"
The Chairman's position is that regulation must respond to this evolution in market structure. He links technological development with the need to reconsider regulatory approaches designed around more traditional trading environments.1
US Approach to International Financial Regulation
A central proposition of Chairman Selig's remarks concerns the relationship between US financial regulation and international regulatory consensus. He acknowledged the continuing importance of international cooperation. However, he rejected the proposition that US regulatory priorities should necessarily follow approaches developed internationally where those approaches do not reflect current market structures.
Chairman Selig stated:
"Although international co-operation remains important, America is not in the business of importing regulatory trends"
His remarks therefore distinguish between continued regulatory cooperation and regulatory convergence for its own sake. The Chairman advocates an approach under which US policy responds to domestic market development and technological innovation, while continuing engagement with international counterparts.1
CFTC Regulated Bitcoin Futures and the Integration of Crypto Assets
Crypto assets form a substantial part of Chairman Selig's assessment of financial market innovation. He identified the launch and expansion of CFTC regulated bitcoin futures during President Donald Trump's first term as contributing to greater institutional access to crypto assets through regulated derivatives markets. Chairman Selig stated that this development helped bring crypto assets into mainstream finance by providing institutional investors with "transparent, regulated exposure" to those assets.1 He further pointed to the growth of bitcoin exchange traded products, which he stated now hold more than 1.2 million bitcoins, compared with essentially none in 2016.
Bitcoin Perpetual Futures Enter the US Regulatory Framework
Chairman Selig also addressed the development of perpetual derivatives in regulated US markets. He stated that during President Trump's second term, the CFTC approved the first "true" bitcoin perpetual contract as a futures contract.1 A perpetual contract has no fixed expiry date. Instead, it uses a periodic funding rate mechanism involving payments between traders to maintain relative price parity with the underlying asset's spot price. Chairman Selig presents this development as part of a wider transition in which structures developed within crypto markets may influence the evolution of conventional financial markets.
He stated: "Now the CFTC is helping extend the foundations laid in crypto markets to the broader financial system as capital markets enter the digital age." The remarks therefore place crypto market infrastructure within a broader discussion about the future design of regulated derivatives markets.1
Stablecoins Considered for Use as Derivatives Collateral
Chairman Selig also addressed the emerging role of regulated stablecoins within US market infrastructure. He referred to recently enacted legislation establishing a comprehensive federal framework for dollar backed stablecoins used for payments. Against that legislative background, he stated that the CFTC is examining how regulated stablecoins could be used as collateral.1 The Chairman described this work as part of efforts to modernise market infrastructure while maintaining the safety and integrity of US derivatives markets. The remarks do not announce a new collateral rule or establish that regulated stablecoins are universally acceptable as derivatives collateral. Rather, they confirm that their potential use as collateral is an area being explored by the CFTC.
Perpetual Futures Could Extend Beyond Crypto Assets
Chairman Selig's remarks indicate that the Commission's consideration of perpetual derivatives is not confined to crypto assets. He stated: "The CFTC is also engaging with market participants in the potential development of perpetual futures for non-crypto assets." This distinction is important. The remarks identify engagement with market participants concerning potential development. They do not announce approval of non crypto perpetual futures or establish a new regulatory framework for those products.1 Chairman Selig also referred to round the clock trading, noting the launch during 2026 of what he described as America's first major exchange offering continuous trading for gold futures.
Prediction Markets and Event Contracts
Prediction markets form another substantial component of Chairman Selig's policy position. He described prediction markets as a tool for price discovery and argued that they can contribute to information aggregation and forecasting. He contrasted the US approach with the position recently advanced by nine European financial regulators, which he characterised as treating event contracts traded through prediction markets as gambling rather than financial instruments.1 Chairman Selig rejected that characterisation, stating:
"That view misunderstands how these contracts are structured and underappreciates the fact that they are traded on marketplaces and not wagers placed with a 'house'."
He further argued that such an approach overlooks the role prediction markets can perform in aggregating information, forecasting and price discovery.
Innovation Rather Than Regulatory Consensus
The broader regulatory proposition advanced by Chairman Selig is that financial regulation should evolve alongside the markets it governs. He stated:
"To remain effective, global regulatory frameworks must evolve as quickly as the markets they oversee."
Chairman Selig links this approach to US participation in international regulatory arrangements. He identifies international agreements, Foreign Board of Trade registrations and supervisory arrangements as areas that should be reviewed and modernised as market structures and technologies develop.1
At the same time, the Chairman expressly recognises the continuing value of cross border cooperation. His position is therefore not framed as rejecting international regulatory engagement. Rather, he advocates US leadership in developing regulatory approaches to emerging market structures instead of waiting for international consensus to develop.
Conclusion
Chairman Selig's remarks provide an indication of the regulatory philosophy he considers appropriate for increasingly technology driven derivatives markets. They are an opinion piece and do not, by themselves, amend CFTC regulations or impose new compliance obligations.
For crypto and derivatives market participants, several areas identified in the remarks warrant attention. The CFTC is examining the potential use of regulated stablecoins as collateral. It is engaging with market participants concerning perpetual futures for non crypto assets. Chairman Selig also places bitcoin perpetual futures, round the clock trading and prediction markets within a wider programme of financial market innovation.1
The remarks also indicate a particular approach to international regulatory coordination. Chairman Selig supports continued cross border cooperation but argues that US regulation should not depend upon international consensus where market structures and policy approaches diverge.
For regulated entities, the immediate importance lies less in new compliance requirements and more in the direction of regulatory policy expressed by the CFTC Chairman. Any resulting legal obligations will depend upon subsequent Commission action, rulemaking, product approvals or other formal regulatory measures.
Footnotes
- Michael S. Selig, Chairman, US Commodity Futures Trading Commission, ‘The Economist Op-Ed | The New Era of Finance Needs Innovation More Than Consensus’, 6 August 2026. The statement is published by the CFTC under Public Statements & Remarks.
- US Commodity Futures Trading Commission, Chairman Michael S. Selig, Public Statements and Remarks. The CFTC records the 6 August 2026 Economist op-ed among Chairman Selig's official public statements.
- US Commodity Futures Trading Commission, Chairman Michael S. Selig, official biography. Chairman Selig was sworn in as the 16th Chairman of the CFTC on 22 December 2025.
Primary source: https://www.cftc.gov/PressRoom/SpeechesTestimony/seligstatement080626
