The Commodity Futures Trading Commission has issued a warning to regulated derivatives platforms, stating that around-the-clock trading, while suitable for crypto-native markets, may not be safely applicable to all traditional asset classes. In a recent advisory, the CFTC urged exchanges and clearinghouses to thoroughly evaluate their products before adopting a 24/7 trading model. The agency acknowledged that newer systems leveraging blockchain, decentralized infrastructure, crypto collateral, stablecoins, and mobile platforms can support continuous access, but cautioned that not all markets share the same capabilities.
This warning coincides with the CFTC’s approval for regulated crypto platforms to offer perpetual futures and global options. Coinbase announced that this authorization enables one of its regulated affiliates to integrate the largest and most liquid global crypto trading categories into its existing 24-hour platform. However, the CFTC emphasized that agricultural derivatives, due to their customer demographics, regional structures, and specialized hedging practices, may face distinct limitations under perpetual trading hours.
The advisory highlighted risks associated with thinner liquidity during off-peak times, which could lead to increased price volatility, wider bid-ask spreads, and heightened manipulation risks. The CFTC reminded firms that they remain the primary line of defense against market abuse and must enhance compliance controls when expanding trading hours to address these specific risks.
In its letter, the CFTC encouraged exchanges and clearing organizations to consult with the agency before implementing significant schedule changes, framing these discussions as part of its oversight amid evolving crypto market structures. Under Chairman Mike Selig, the CFTC has prioritized crypto, prediction markets, and new trading technologies, aligning with the Trump administration’s push for clearer digital asset regulations. Coinbase, which already supports 24/7 trading across equities, futures, and prediction markets, stated that the new approval adds crypto perpetuals and global options to its CFTC-regulated affiliate’s offerings.
Additionally, the CFTC and Gemini jointly requested a Manhattan court to vacate a $5 million settlement order from January 2025 related to Gemini’s proposed Bitcoin futures contract. This move reflects the agency’s current leadership reviewing past crypto enforcement actions while creating more space for regulated digital asset products. The CFTC is willing to allow 24-hour crypto markets but insists that traditional derivatives platforms demonstrate that constant trading will not compromise market oversight.