The Commodity Futures Trading Commission plans to allow perpetual futures contracts for cryptocurrencies within weeks, Chairman Michael Selig announced at the Milken Institute conference. These derivatives, which let traders hold leveraged positions indefinitely without expiration, have been traded almost entirely on offshore exchanges until now.

Selig emphasized the need to bring liquidity back to US markets, where trading has migrated to platforms in Asia, Europe, and the Bahamas. The regulator aims to establish proper investor protections to prevent offshore failures from affecting American shores.

The move represents a significant shift in US crypto regulation, as similar products exist domestically but require rule changes for broader retail access. Selig has been working with SEC Chairman Paul Atkins on Project Crypto to align federal oversight of digital assets and reduce regulatory fragmentation.