The U.S. Commodity Futures Trading Commission said regulated derivatives venues should not assume that 24/7 trading can be safely applied across every market. In a Friday advisory, the agency told exchanges and clearinghouses to evaluate each product carefully before extending trading and clearing into a round-the-clock model.
According to the CFTC, some markets are better suited to constant access because they rely on newer trading architecture, including blockchain networks, decentralized infrastructure, crypto collateral, stablecoins, and mobile platforms. That framework is closer to crypto-native markets than to many traditional asset classes. The advisory came as the agency also allowed CFTC-regulated crypto platforms to offer perpetual futures and global options. Coinbase said in a Friday blog post that the approval allows one of its regulated affiliates to add the largest and most liquid segment of global crypto trading to its existing 24-hour platform.
CFTC separates crypto-native products from traditional derivatives
The advisory makes clear that the regulator does not view all markets the same way on permanent trading hours. Agricultural derivatives were cited as an example of a market that may face different constraints because of its customer base, regional structure, and specialized hedging practices.
The agency said some products may see thinner liquidity during off-peak hours. If that happens, markets could face larger price swings, wider bid-ask spreads, and greater exposure to manipulation. Under CFTC rules, trading platforms remain the first line of defense against market abuse, so firms that expand trading hours are expected to add compliance controls matched to the risks of constant access.
Agency wants firms to discuss major schedule changes in advance
In its letter, the CFTC urged regulated exchanges and clearing organizations to speak with the agency before making major changes to trading schedules. The advisory framed those discussions as part of the regulator’s oversight function, especially as market structure shifts around crypto products.
The report said CFTC Chairman Mike Selig has made crypto, prediction markets, and new trading technology central issues for the agency. During his tenure, the regulator has made several crypto policy decisions. Coinbase also said its platform already supports 24/7 trading in equities, futures, and prediction markets, and that the new approval adds crypto perpetuals and global options through a CFTC-regulated affiliate.
Gemini settlement rollback reflects the same policy shift
The same regulatory setting is affecting older enforcement actions. According to earlier reporting, the CFTC moved to scrap its $5 million settlement with Gemini after deciding the case should not have been brought under the agency’s current standards.
A joint motion filed Wednesday in Manhattan federal court showed that the CFTC and Gemini asked a judge to vacate the January 2025 consent order. That order had resolved allegations tied to Gemini’s proposed Bitcoin futures contract. The move indicates that current agency leadership is reviewing past crypto enforcement while leaving more room for regulated digital asset products. The CFTC is willing to permit 24-hour crypto markets, but it is asking traditional derivatives venues to show that constant trading will not weaken market oversight.