CFTC Chair Clarifies Perpetual Futures Contracts Don't Require Fixed Expiration Dates, Says Funding Rates Aid Price Anchoring

According to CFTC Chair Mike Selig, who issued a statement on X recently, perpetual futures contracts without fixed expiration dates meet the legal definition of futures under U.S. commodity law, as the Commodity Exchange Act does not explicitly require expiration dates for such contracts.

Selig added that funding rate mechanisms, which some argue impose high costs, actually help maintain price anchoring and have annual holding costs comparable to traditional futures when accounting for roll-over expenses. The CFTC received over 100 comments from industry participants, including registered institutions, after seeking public feedback in April 2025 on perpetual and around-the-clock trading.