Per Woofun AI, Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), addressed misconceptions surrounding perpetual futures contracts following recent regulatory approvals. Selig emphasized that the Commodity Exchange Act and CFTC regulations do not mandate fixed expiration or delivery dates, relying instead on judicial precedents and agency interpretations for contract classification.

Selig further clarified that while offshore models may offer 250x leverage, CFTC-regulated perpetual contracts will strictly adhere to standard leverage limits applicable to other futures products. Regarding market participation, the CFTC confirmed receiving over 100 responses during its April 2025 public comment period on 'perpetual contracts' and '24/7 trading'. Finally, Selig argued that funding rate mechanisms serve to anchor prices, with annualized holding costs comparable to those of rolling traditional term futures.