CFTC Supports 24/7 Trading for Crypto, Cautions Traditional Markets
- The U.S. Commodity Futures Trading Commission (CFTC) issued an advisory stating that while crypto markets can benefit from expanded trading hours, traditional markets may not be suitable for a shift to a 24/7 schedule.
- The advisory coincided with the CFTC’s approval of perpetual futures contracts on native crypto platforms.
- Concerns were raised about potential market abuse, reduced liquidity, and increased volatility in less-observed off-peak trading periods.
- Chairman Mike Selig emphasized embracing new technologies like blockchain as part of the agency’s regulatory agenda.
- Coinbase announced its platform supports futures, equities, and prediction markets operating around the clock.
The CFTC’s advisory outlines considerations for firms looking to expand their trading hours while highlighting the unique challenges faced by traditional markets compared to crypto platforms. The agency urged firms to communicate their plans regarding extended trading hours effectively.
This advisory reflects a significant shift in regulatory attitudes towards crypto, as evidenced by Coinbase’s ability to operate multiple financial services 24/7.
