U.S. CFTC Seeks Public Comments on 24/7 Derivatives Trading and Perpetual Futures
Key Takeaways:
- The CFTC is piloting market implications of 24/7 derivatives trading.
- Perpetual futures contract, a favorite of cryptocurrency markets, is under consideration.
- Public comments are available through July 2025.
- The move is part of broader regulatory interest in crypto-typical financial innovation.
The U.S. Commodity Futures Trading Commission (CFTC) said on April 21, 2025, that it is asking for public comment on several issues involving 24/7 trading and the proliferation of perpetual futures—never-expiring derivative contracts that are common in crypto markets.
The request for information (RFI), formally titled Request for Information on Market Trends, Innovations, and Emerging Issues in the U.S. Derivatives Markets, marks the agency’s active effort to foresee cutting-edge innovations that will shape the finance of the future.
CFTC Opens Public Comment on Perpetual Contracts Amid Market Innovation
Why It Matters
The derivatives landscape is evolving at a very rapid rate, especially with the development of digital assets and decentralized exchanges. Traditional derivatives markets have operated with pre-set trading times, generally in line with institutional arrangements and centralized clearinghouses. On the contrary, digital asset markets such as crypto operate 24 hours a day, 7 days a week, giving global access to continuous trading.
The CFTC is now grappling with a crucial question: Should U.S. derivatives markets adapt to keep up with the tempo and ease of these digital-native environments?
As part of this public input effort, the agency is calling upon industry participants, tech vendors, retail and institutional traders, and the broader public to weigh in on both the advantages and dangers of perpetual futures and round-the-clock trading.
Highlight on Perpetual Futures
Perpetual futures are non-expiry contracts for derivatives widely traded in crypto platforms like Bybit, Binance, and OKX. Such a contract is favored for its convenience and simplicity compared to traditional futures, whose expiration and roll-over requirements it carries.
The RFI discusses several of the CFTC’s concerns with these instruments:
- Risk management: How do platforms and users manage exposure on unmatured contracts?
- Market stability: Could perpetual products contribute to flash crashes or systemic risk during times of abnormal volatility?
- Price discovery: Is price discovery as effective without traditional arbitrage mechanisms?
The agency is particularly interested in whether perpetual futures could (or should) become part of the regulated U.S. derivatives market.
24/7 Market Structure Under Review
Another key theme of the RFI is the viability and implications of 24/7 trading. While crypto markets have brought this model into the mainstream, most regulated financial products in the U.S. still trade on weekdays and within restricted hours.
Key Milestones and Future Actions
The public-comment period will remain open for 90 days, through July 22, 2025. During the timeframe, the interested parties can provide their views via the CFTC’s website.
The CFTC explained that no imminent regulatory steps are planned on the basis of this RFI alone. However, comments gathered can influence future rulemaking, pilot programs, or coordination with other regulators.
The Commission is particularly interested in receiving substantive feedback responding to operational, legal, and market structure issues. A public roundtable is also being considered as part of the review process.
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