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

Odaily Planet Daily News: Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated in a written commentary 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 restrict market growth.

Selig noted that for decades, derivatives—financial contracts including 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. U.S. leadership in derivatives is built on multi-generational market competition, robust institutions, effective regulation, and an openness to innovation. For years, global regulators have regarded the CFTC as the benchmark for efficient market oversight.

"Finance in a new era demands innovation, not consensus," Selig said. The U.S. will not adopt regulatory trends that hinder market development, but will strike a balance between innovation and market efficiency. He emphasized that under 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 attitude among U.S. regulators toward financial technology, digital assets, and new financial instruments. As crypto assets, tokenized financial products, and AI-driven trading tools develop rapidly, striking a balance between risk control and innovation is becoming a key issue for global financial regulation.