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CFTC Explores 24/7 Trading for Derivatives Markets Following Crypto Lead

CFTC Considers 24/7 Derivatives Trading Model Inspired by Cryptocurrency Markets

  • The Commodity Futures Trading Commission (CFTC) is seeking public input on expanding derivatives trading to 24/7 operations, similar to how cryptocurrency markets function.
  • Acting Chairman Caroline Pham emphasized the need for a forward-looking approach to market structure changes while ensuring market protection.
  • The agency would need new laws before gaining direct authority over spot-market trading of Bitcoin and other commodities.

The Commodity Futures Trading Commission (CFTC) has opened a public comment period to consider extending derivatives trading to a 24/7 model, mirroring the round-the-clock operations already established in cryptocurrency markets. The regulatory body, which oversees bitcoin as a commodity, announced the initiative on Monday as part of its evaluation of how technological advancements and market demand are pushing regulated firms toward continuous trading capabilities.

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Forward-Looking Regulation

“As I have long said, the CFTC must take a forward-looking approach to shifts in market structure to ensure our markets remain vibrant and resilient while protecting all participants,” stated Acting Chairman Caroline Pham, who was appointed by President Donald Trump while awaiting Senate confirmation of chairman nominee Brian Quintenz. The request for comments doesn’t explicitly mention digital assets oversight but addresses broader market structure evolution.

Implementing non-stop trading presents significant challenges for traditional U.S. markets unaccustomed to operating without downtime. The CFTC is examining what governance frameworks, staffing models, and technologies would be necessary to maintain market integrity and operational resilience under a continuous trading model. Such expansion would require firms to manage live system maintenance, technology updates, and human monitoring during extended hours – all issues the cryptocurrency industry has already navigated.

Regulatory Authority Limitations

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While the CFTC currently has jurisdiction over bitcoin and other cryptocurrencies defined as commodities, its regulatory reach remains limited. The agency would still require legislative changes before obtaining direct authority over actual spot-market trading of bitcoin and other tokens not categorized as securities. Securities would remain under Securities and Exchange Commission (SEC) oversight.

If Congress establishes the CFTC as a major regulator for cryptocurrency trading and the platforms handling customer transactions, the agency would be overseeing a space where 24/7 operations are already the standard model. This potential expansion of continuous trading reflects the growing influence of digital asset markets on traditional financial infrastructure and regulatory frameworks.

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