The Chairman of the US CFTC clarifies four common misconceptions about perpetual futures contracts.

On June 16, CoinFeed reported that Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), published an article on the X platform clarifying four common misconceptions about perpetual futures contracts. Regarding the misconception of "fixed expiration date": Some argue that the definition of a "futures contract" requires a fixed expiration or delivery date, and that the indefinite nature of perpetual contracts contradicts Congressional intent. Selig clarified that neither the Commodity Exchange Act nor CFTC regulations provide a clear definition of "futures contract," nor do they require a fixed expiration or delivery date. Since Congress has not defined the term, the standard for determination is provided by case law and the Commission's interpretation, neither of which requires a fixed expiration date. Regarding the misconception of "high leverage": Some argue that the CFTC, in approving the BTCPERP contract, approved a futures contract that allowed Americans to use leverage up to 250 times, violating its own rules.