[Michael Selig: Cryptocurrency Perpetual Contracts Are Unsuitable for the Agricultural Market]
According to Cointelegraph, Michael Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated at the American Cotton Shippers Association annual meeting that the 24/7 trading model of cryptocurrency perpetual contracts is not suitable for traditional commodity markets like agriculture, as the agricultural market relies on limited trading hours and physical delivery mechanisms. Previously, the CFTC approved Bitcoin perpetual contracts for the prediction market platform Kalshi and issued a no-action position for similar products by Coinbase. Kraken also launched perpetual trading for U.S. users through the CFTC-regulated platform Bitnomial. Last week, the Chicago Mercantile Exchange (CME) filed a lawsuit against the CFTC, alleging that the approval of perpetual contracts violated the Commodity Exchange Act.
