Note: This article is CFTC Chairman Michael Selig’s interview with CNBC Fast Money; compiled by Golden Finance Claw

CNBC: What would you say to those who oppose perpetual futures?

Michael Selig: Too late. We've done this and that's the way it is. Incumbents will always fear the future, but we are looking forward. We've seen this product flourish overseas, and it's been around for a long time. Moreover, in the United States, similar style perpetual contracts have actually been on the market for nearly a year.

It is time to approve regulated futures contracts with no expiry date (perpetual futures contracts).

They trade much like other types of contracts on our market, except, of course, they do not expire. This benefits investors in many cases, as they do not have to roll over their positions. We will ensure that these products are available for trade and are well regulated within the United States.

CNBC: One of the arguments that CME Group's Terry Duffy made to us is that perpetual contracts are not futures contracts because there is no expiration date, and you changed the definition of a futures contract and changed the concept of "futures" in the Commodity Exchange Act - which is an act of Congress that only Congress has the power to change. How do you respond? What gives you the authority to modify the definition of a futures contract?

Michael Selig: This is completely untrue. The Commodity Exchange Act does not define the term “futures contract.” In fact, believe it or not, that word is not used in the bill. The term used in the bill is a "future delivery contract," a concept that has been interpreted by the courts over the years. We also refer to the court's interpretation. At the same time, the CTFC Commission, as the regulatory agency responsible for interpreting the Act, also has the authority to interpret this term in many situations. The court considered a variety of factors, including the concept of “futures nature” – but this does not necessarily mean that a contract must have a fixed delivery, termination or expiration date. It focuses on issues of future price and future value. The United States has long had cash-settled derivatives contracts. These contracts are cash-settled like other contracts, with future daily funding payments, there is a funding rate, and longs or shorts pay that rate daily. So they are no different from other types of products on our market. Under the Trump Administration, we in the United States are working to bring new derivatives into our regulatory framework, and this is just one more example of the results we are delivering for the American people.

CNBC: I understand that you mentioned that perpetual futures contracts exist overseas. But has the pressure increased recently due to the rise of prediction markets, especially Kalshi and Polymarket? Is there more political pressure on your organization, perhaps because the Trump administration wants to introduce these future products, or perhaps because Donald Trump Jr. serves as a paid strategic advisor to Kalshi and also serves as an advisor to Polymarket? Is there a connection?

Michael Selig:Suggestions like these are laughable. This has nothing to do with prediction markets. We see all the major incumbent exchanges, almost all the incumbents and many new entrants looking to list this product. This is better for the investor - the investor can keep the position open without having to roll the contract. This is not new or unique. We have also seen other players listing the same product, so this has nothing to do with Kalshi. Of course, they were the first platform to approve the product, but many others have since done so and we are willing and looking forward to working with all market players, old and new, who want to innovate.

CNBC: So to be clear, there is no political pressure? Donald Trump Jr. connection totally unimportant?

Michael Selig: That implication is absolutely ridiculous.

CNBC: Does the approval of cryptocurrency perpetual futures contracts paves the way for other asset classes? Is this something your organization is considering?

Michael Selig: We are evaluating. I have said from day one that we will look at it asset by asset, not one size fits all. Some assets are suitable for perpetual contracts, and we have made it very clear in the relevant instructions. We published an interpretive rule regarding prediction markets or perpetual contracts and 24/7 markets, and in that explanation we made it clear that this is not one size fits all. We look at each asset on a case-by-case basis and some products may be suitable and some may not. We will not shoehorn things into the new framework, nor will we allow products in that would create regulatory problems. The whole approach is based on the premise that we want market innovation, but it must be responsible innovation. We want to ensure that these novel products fit within our regulatory framework. We apply regulatory standards and requirements to these new products that we apply to other products. It’s not about fitting square pegs into round holes, but finding tailored rules and regulations that ensure these new products have the same controls and investor protections as other types of products.

CNBC: You mentioned investor protection, and while protecting investors and ensuring product appropriateness is not entirely within the CFTC's remit, some would argue that perpetual futures contracts are dangerous to ordinary investors who may not understand the role of the funding rate mechanism, such as the cost of holding the contract and how the funding rate erodes the value of the position. Is this a concern, or is it entirely up to the consumer, investor or trader to decide whether to enter a perpetual futures contract?

Michael Selig:There are various new products on our market today - zero-day options, swap contracts, various futures contracts. This is just another new derivatives instrument on the market. Of course, exchanges are responsible for disclosing all information to traders. This is no different than any other product. I think the idea that we should take a paternalistic approach and only allow one product because it's easier to understand is a misunderstanding in itself, because options are of course very complex. These products are not particularly complex, if you look at the contract terms. So we monitor them, make sure the terms are open, make sure there's appropriate disclosure. As for the suitability issue, of course brokers must exercise judgment to ensure they evaluate clients trading in their markets.

CNBC: One last question, about potential future products. Michael, I'm curious, have you been paying attention to the performance of platforms like Hyperliquid leading up to the SpaceX IPO debut? You saw that they very accurately predicted the closing price of Space on its first day of trading. Does this allow you to see what types of products might actually be suitable?

Michael Selig: This is proof that innovation is happening globally. We want it to happen here. We saw Hyperliquid and all these offshore platforms launch new products that turned out to be very accurate in predicting IPO prices and impacted our market as well. We are seeing the 24/7 crude oil contract impacting the US market. So we're certainly aware of what's happening offshore and recognize that we may need to move faster because of these offshore innovations.

Our approach is very clear-headed - we recognize that these products are available offshore, If we don't create a regulated path in the U.S., the market will flock offshore. We have been clear from day one that if we don’t seize this opportunity to build a regulatory framework for new products — like cryptocurrencies, prediction markets, new derivatives like perpetual contracts — these markets will develop.

They may not develop in the United States, but they will develop offshore, and Americans will find ways to access them. They will definitely go offshore to trade these products because there is real demand for these products. So we're excited to launch these products in the U.S. and ensure that there are strong and robust regulatory controls around them.