CFTC Chairman personally steps in to legitimize perpetual contracts; having no fixed expiration date ≠ violation, and the blame for 250x leverage shouldn't be placed on regulators. The funding rate design is originally meant to anchor the spot price, and this move is seen as giving the industry a reassuring boost.

Wu Shuo learns that U.S. CFTC Chairman Mike Selig issued a statement clarifying several controversies regarding perpetual futures contracts. Selig stated that the Commodity Exchange Act and CFTC regulations do not require futures contracts to have fixed expiration dates, so perpetual contracts do not violate the current regulatory framework; the previously approved BTCPERP contract also does not mean that U.S. investors are allowed to use leverage of up to 250 times, as high leverage mainly exists in some offshore markets rather than regulated exchanges. Selig also pointed out that the CFTC has publicly solicited comments on products like perpetual contracts in April 2025, and the funding rate mechanism does not lead to excessively high costs; its purpose is to keep the price of perpetual contracts linked to the spot market.