The US Commodity Futures Trading Commission (CFTC) is exploring the possibility of allowing round-the-clock derivatives trading and introducing perpetual futures contracts. This move would bring traditional markets closer to the cryptocurrency sector, which has long operated on a 24/7 basis.
Acting CFTC Chairman Caroline Pham emphasized the need for the agency to adopt a forward-looking approach to evolving market structures. She stated, “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. One evolving trend is the move to 24/7, 24/6, or 24/5 trading hours.”
The request for public feedback comes at a time when market participants are increasingly advocating for more flexible trading windows. US equities exchanges are already expanding access, with the Securities and Exchange Commission approving 24 Exchange to operate nearly around the clock five days a week. Nasdaq has also announced similar plans, and brokers like Robinhood already offer 24-hour trading during the workweek.
In contrast, cryptocurrency exchanges have long provided continuous trading opportunities, allowing traders to buy and sell digital assets at any hour with high liquidity and real-time price discovery.
The CFTC is considering aligning traditional derivatives markets with this model, potentially increasing accessibility for global participants and improving responsiveness to macroeconomic events.
Additionally, the agency is evaluating the possibility of allowing perpetual futures contracts, a contract type widely used in crypto markets but currently unavailable to US traders. These contracts, known as “perps,” do not expire and are settled continuously throughout the day. Platforms like Coinbase have expressed interest in launching 24/7 and perpetual-style products in the US.
Under the Trump administration, the CFTC is expected to expand its oversight of the digital asset market and take on a softer regulatory stance towards the crypto sector. However, the agency remains cautious about the risks associated with 24/7 trading and is seeking feedback on how it could impact trading, clearing, and risk management, with a focus on areas like market integrity, customer protection, and retail participation.
Comments on the proposal will be accepted until May 21, reflecting a broader trend towards easing oversight in commodity markets and modernizing financial infrastructure. The CFTC’s move to seek public input on creating a crypto-style 24/7 derivatives market marks a significant step towards aligning traditional markets with the innovative practices of the cryptocurrency sector.