Key Information
- The Commodity Futures Trading Commission (CFTC) is seeking community feedback regarding around-the-clock trading for derivatives, potentially applicable to crypto.
- The call for comments does not specifically mention crypto activities.
Background
Bitcoin, regarded as the leading cryptocurrency, is recognized as a commodity by U.S. regulators and thus falls under the CFTC’s jurisdiction. The agency is now looking for insights on allowing continuous trading for the derivatives market, similar to what is already offered for Bitcoin and other digital currencies.
While Congress is working to frame regulatory guidelines for the cryptocurrency sector, the CFTC’s recent request for public commentary does not make any direct reference to the oversight of digital assets.
“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. She was appointed by President Trump while awaiting Senate confirmation for the appointed chairman nominee, Brian Quintenz.
The possibility of uninterrupted trading introduces challenges for U.S. markets, including the need for suitable governance frameworks, staffing models, and technologies to preserve market integrity and resilience under a continuous trading model. This evolution would necessitate firms to manage active maintenance and monitoring of systems continuously, an area where digital asset operations have considerable experience.
Currently, for the CFTC to gain authority over actual spot-market trading of Bitcoin and other tokens not classified as securities, a legislative change is required. If recognized as a substantial regulator of trade, the CFTC will oversee platforms and companies managing customer transactions, where 24/7 activity is already the standard.
