The U.S. Commodity Futures Trading Commission (CFTC) issued industry guidance to regulated exchanges and clearinghouses, reminding them of the liquidity, volatility, and monitoring pressures the market faces when trading and clearing are extended to 24/7. The agency also noted that this model is a better fit for the infrastructure of the crypto market.

Crypto perpetual contracts were released on the same day.

On the same day the guidance was released, the CFTC also approved regulated crypto platforms to enter the 24/7 perpetual futures market. These two actions together demonstrate that regulators are treating crypto-native platforms differently from traditional derivatives markets.

The CFTC stated in its document that different underlying markets have inherent differences, therefore not all asset classes are suitable for switching to 24/7 trading. The agency specifically mentioned that the development of blockchain networks, decentralized infrastructure, stablecoins and other forms of crypto asset collateral, as well as mobile trading tools, makes continuous trading easier to achieve in the crypto market.

Traditional markets face more constraints

The CFTC believes that some traditional derivatives markets may not be suitable for a 24/7 model, with agricultural products being an example. These markets typically have stronger regional characteristics, and their customer base and hedging habits are more specialized.

Regulators are concerned that extending trading hours during off-peak periods could lead to decreased liquidity, increased volatility, and wider bid-ask spreads, thereby increasing opportunities for market manipulation. The document therefore requires platforms to make self-monitoring their first line of defense and to implement additional compliance measures for extended trading hours.

• Key risks include: decreased liquidity
• Possible consequences include: increased volatility and widening price spreads.
• Regulatory requirements include: communicating the extended time arrangements with the CFTC in advance.

Regulatory approaches are diverging

This document also reflects a clearer stratification in the US's approach to derivatives regulation. For crypto-native platforms, the regulatory focus is gradually shifting from "whether to allow" to "how to bring them under regulation."

CFTC Chairman Mike Selig has been pushing for policies related to crypto and prediction markets and supporting the adoption of new technologies. The report points out that this direction aligns with the Trump administration's stance of encouraging the removal of regulatory hurdles for the crypto industry.

Coinbase also stated in a blog post that day that it is attempting to build traditional financial services on top of crypto infrastructure. The company said that its platform's stocks, futures, and prediction markets already support 24/7 operation, and the CFTC's latest approval also includes global crypto options and perpetual contracts in this framework.