U.S. regulator says 24/7 trading is great for crypto, may not be fit for other sectors
The CFTC said 24/7 trading may fit blockchain-native markets but may not suit all traditional derivatives. In a Friday advisory to regulated exchanges and clearing firms, it warned that markets such as agriculture could be less compatible with nonstop trading because of regional customer bases and specialized hedging practices. The agency said expanded hours can reduce liquidity, increase volatility, widen spreads, and create more chances for manipulation during off-peak periods. Firms were told to add compliance controls and notify the CFTC about planned changes. The guidance highlights a split between legacy markets and new crypto platforms, issued the same day the CFTC gave crypto-native firms a major green light for perpetual futures. Chairman Mike Selig has pushed to support crypto and other new technologies. Coinbase said it is rebuilding traditional finance on crypto infrastructure and now offers 24/7 equities, futures, prediction markets, and, through a CFTC-regulated affiliate, global options and perps.
