US CFTC Chairman: Derivatives Market Enters a New Cycle, Regulation Will Not Stifle Financial Innovation

Odaily News - Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), wrote that the global derivatives market is entering a new phase of development, and the United States will continue to lead financial innovation without introducing regulatory models that could constrain market growth.

Selig noted that for decades, derivatives—including financial contracts such as futures, options, and swaps—have served as essential tools for corporations, farmers, investors, and financial institutions to manage risk and optimize capital allocation. Today, the notional value of the global derivatives market has surpassed $1.2 quadrillion, with nearly half of that market overseen by the CFTC. America's leadership in derivatives is built on generations of market competition, robust institutions, effective regulation, and an openness to innovation. For a long time, global regulators have regarded the CFTC as the benchmark for efficient market oversight.

"Financial innovation in a new era requires innovation, not consensus," Selig stated. He said the U.S. will not adopt regulatory trends that hinder market development, but will instead strike a balance between innovation and market efficiency. He emphasized that during his tenure, the U.S. will continue to play a leading role in derivatives rulemaking and financial innovation, keeping the market competitive.

Market observers believe Selig's remarks reflect a positive regulatory stance in the U.S. toward financial technology, digital assets, and emerging financial instruments. With the rapid development of crypto assets, tokenized financial products, and AI-driven trading tools, striking the right balance between risk control and innovation is becoming a key topic for global financial regulators.