The CFTC seeks public comments on the potential for 24/7 derivatives trading amidst its impending role in overseeing cryptocurrency. The agency highlights technological advances and market demands whilst addressing governance and operational challenges for continuous trading. Legislative changes are necessary for the CFTC to directly regulate spot-market trading in bitcoin and similar assets.
The Commodity Futures Trading Commission (CFTC) has initiated a public commentary period regarding the potential expansion of around-the-clock derivatives trading, particularly in the context of digital assets. Although the commentary request does not specifically focus on cryptocurrency, the agency is anticipating a role in overseeing crypto trading as regulatory frameworks evolve.
Bitcoin, recognised as a commodity by U.S. regulators, is central to the discussion as its trading operates 24/7 in the digital asset space. The CFTC’s recent solicitation for public input reflects ongoing technological advancements and market demands, urging them to evaluate whether derivatives markets could support continuous trading activities effectively.
Acting Chairman Caroline Pham emphasises the importance of a proactive approach to market structural shifts, aiming to maintain vibrant, resilient markets that protect all participants. The challenges of establishing a continuous trading model include the need for appropriate governance frameworks, operational resilience, and compliance with critical principles to ensure market integrity during unbroken trading periods.
For the CFTC to gain direct authority over spot-market trading of bitcoin and other tokens not classified as securities, legislative changes are essential. The evolution towards a regulatory environment that accommodates 24/7 trading is already evident in the digital assets sector, highlighting the need for regulatory clarity as Congress deliberates on establishing comprehensive industry rules.
