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CFTC says some derivatives markets may not suit 24/7 trading

The CFTC has cautioned derivatives platforms they oversee that while 24/7 trading is common in the crypto world, it might not be a secure approach for all traditional investments.

Summary

  • The CFTC warned that 24/7 trading may not suit every traditional derivatives market.
  • Coinbase said the CFTC approval adds crypto perpetuals and global options to its regulated platform.
  • The CFTC and Gemini asked a Manhattan court to vacate a $5 million settlement order.

The CFTC advised exchanges and clearinghouses to thoroughly evaluate products before offering 24/7 trading. The agency noted that some markets are well-suited for constant access, especially those utilizing modern technologies like blockchain, decentralized systems, cryptocurrency collateral, stablecoins, and mobile platforms.

Alongside a new warning, the agency also gave the green light for crypto platforms under its regulation to offer perpetual futures and global options. Coinbase announced on Friday that this approval allows one of its regulated branches to expand its 24-hour trading platform to include the most popular and actively traded type of crypto trading worldwide.

CFTC draws line between crypto and traditional markets

The agency’s guidance explains that it doesn’t treat all markets identically when it comes to setting permanent trading hours. Specifically, the CFTC noted that agricultural derivatives might have different restrictions due to the types of customers involved, how those markets are organized geographically, and the unique ways people use them to manage risk.

The agency warned that certain products might have less trading activity during slower times of the day. This could lead to more volatile prices, larger differences between buying and selling prices, and an increased risk of market manipulation, according to the CFTC.

Trading platforms are primarily responsible for preventing unfair practices in the market, according to regulations from the CFTC. The agency also stated that if firms offer trading for longer hours, they need to strengthen their monitoring systems to address the unique risks that come with round-the-clock access.

Agency Asks Firms to Discuss 24/7 Plans

The CFTC sent a letter asking cryptocurrency exchanges and clearing organizations to consult with them before making significant changes to how and when trading happens. The agency explained this is part of its job to oversee markets, particularly as crypto trading evolves.

Mike Selig, the head of the CFTC, has prioritized cryptocurrency, prediction markets, and innovative trading technologies. During his time leading the agency, the CFTC has been actively developing policies for crypto, responding to a push from the Trump administration to provide more clarity for businesses in the digital asset space.

Coinbase already lets users trade stocks, futures, and prediction markets around the clock. Now, with a new regulatory approval, they’re expanding to include crypto perpetuals and global options, all through a division overseen by the CFTC.

Gemini settlement reversal adds to policy reset

Recent changes in regulations have also impacted past legal cases. As crypto.news reported previously, the CFTC decided to drop its $5 million settlement with Gemini, concluding that the case didn’t meet today’s requirements for being brought to court.

The Commodity Futures Trading Commission (CFTC) and Gemini have jointly asked a federal judge in Manhattan to cancel a previous agreement. This agreement, reached in January 2025, settled concerns about Gemini’s plans to offer Bitcoin futures contracts.

The agency is looking back at previous cryptocurrency decisions while also creating opportunities for well-regulated digital asset products. The CFTC is considering allowing crypto markets to operate 24/7, but requires established derivatives platforms to demonstrate that round-the-clock trading won’t compromise market monitoring and security.

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2026-05-29 21:04