CFTC Signals 24/7 Trading Fits Crypto Better Than Many Traditional Markets

The U.S. Commodity Futures Trading Commission is cautioning that the global push toward round-the-clock trading may work for crypto-native markets but could prove problematic for parts of the traditional derivatives ecosystem. In a letter sent Friday to the exchanges and clearing organizations it oversees, the CFTC said the move to 24/7 trading and clearing is "not currently" appropriate for every asset class, citing structural differences across underlying markets. The agency noted that the viability of always-on markets has been enabled by advances such as blockchain networks and decentralized infrastructure, alternative collateral including stablecoins and other crypto assets, and broad access via smartphones and related applications. It added that more platforms are now offering 24/7 access to both retail and institutional traders across a growing range of products. The CFTC singled out certain traditional sectors as less compatible with continuous trading. It said some derivatives markets, including agricultural products, may be ill-suited to 24/7 hours given their distinct customer bases, regional characteristics, and specialized trading and hedging practices. A central concern is market integrity during less-monitored, off-peak periods. The regulator warned that extending hours for certain markets or products could lead to thinner liquidity, higher volatility, wider bid-ask spreads and, in turn, greater opportunity for market manipulation. The CFTC said platforms remain the first line of defense and should add compliance measures tailored to the risks that come with expanded trading schedules. It urged firms considering longer hours to share their plans with the agency. The advisory arrived the same day the CFTC granted a significant green light to crypto-native platforms offering perpetual futures contracts, a move that underscores what may be an emerging split between incumbent market structures and newer entrants. Chairman Mike Selig, the agency's current leader, has made adoption of new technologies—including crypto and prediction markets—a top priority. His agenda, aligned with directives and encouragement from President Donald Trump, has accelerated the regulator's crypto policy work aimed at creating a clearer path for the industry. Coinbase, a CFTC-supervised crypto-native firm, said in a Friday blog post that it is working to rebuild traditional financial services on crypto infrastructure. "Equities, futures, and prediction markets all operate 24/7 on our platform," the company said, pointing to the agency's new allowance of global options and perpetual futures through one of its CFTC-regulated affiliates. "Today's announcement adds the largest and most liquid category of global crypto trading to that lineup."