The U.S. Commodity Futures Trading Commission (CFTC) has expressed that while 24/7 trading aligns well with the cryptocurrency sector, it may not be suitable for all other market sectors.
As the CFTC issued landmark approvals for crypto perpetual futures contracts, it explained in a related advisory that round-the-clock activity isn't right for all.
By Jesse Hamilton|Edited by Nikhilesh De May 29, 2026, 4:29 p.m. 2 min readMake preferred on
The U.S. Commodity Futures Trading Commission advises that 24/7 trading is a fit for crypto firms but maybe not for other derivatives platforms. (Jesse Hamilton/CoinDesk)What to know:
- The CFTC has issued a warning to the derivatives sector, highlighting potential challenges in transitioning to around-the-clock services, while indicating that the crypto industry is better suited for this trading model.
- This guidance was released alongside the CFTC's approval for crypto companies to engage in 24/7 perpetual futures contracts, signaling a widening gap between traditional firms and emerging digital platforms.
As the trend of continuous trading gains momentum globally, the CFTC noted that while it could be appropriate for blockchain-based companies, traditional markets may not benefit similarly. This perspective was shared in a letter sent to various firms under its regulation.
The advisory coincided with the CFTC's significant approval of crypto-native firms to offer perpetual futures contracts, suggesting an evolving landscape in the trading sector.
In their communication, the agency stated, "Due to the fundamental differences between asset classes, moving to 24/7 trading may not be appropriate for all types of assets."
They elaborated, stating, "The capacity to conduct trading continuously has developed alongside advancements in market technologies, including blockchain and decentralized systems, as well as new forms of collateral like stablecoins and crypto assets, facilitated by smartphones and related apps. As a result, a growing number of platforms are providing 24/7 access to both retail and institutional investors." However, they cautioned that other markets, particularly those dealing with agricultural products, might not be suited for non-stop trading due to their specific customer demographics and regional characteristics.
The CFTC's primary concern revolves around the risk of market manipulation during less-monitored trading hours, warning that extending trading into a 24/7 format could lead to decreased liquidity, heightened volatility, and wider bid/ask spreads.
Firms are expected to take responsibility for self-regulation and implement additional compliance measures to address the challenges posed by extended trading hours.
This advisory serves as a framework for firms contemplating an expansion of their trading hours, and the CFTC recommends firms keep the agency informed of their strategies.
Chairman Mike Selig has prioritized embracing new technologies, including cryptocurrency and prediction markets. His support for these advancements, along with encouragement from President Donald Trump, has catalyzed increased regulatory efforts aimed at establishing a clear path for the crypto industry.
Coinbase, a crypto-native firm regulated by the CFTC, stated in a blog post that it is working to reconstruct traditional financial services using crypto infrastructure. They remarked, "Equities, futures, and prediction markets all operate 24/7 on our platform," referencing the agency's new approval for global options and perpetual contracts through one of its CFTC-regulated affiliates. "Today's announcement adds the largest and most liquid category of global crypto trading to that lineup."
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