US CFTC: 24/7 trading is suitable for the crypto industry and may not be suitable for other fields

On May 30, the U.S. Commodity Futures Trading Commission (CFTC) issued guidance on Friday stating that round-the-clock trading is suitable for crypto companies, but may not be suitable for other derivatives platforms. The agency pointed out that due to inherent differences in the underlying market, the shift to 24/7 trading and clearing is not currently suitable for all asset classes. The development of blockchain networks, stablecoins and other technologies has promoted the all-weather characteristics of the crypto market. However, due to its unique customer base and regional characteristics, extended trading hours in derivative markets such as agricultural products may lead to reduced liquidity, increased volatility, and increased market manipulation risk. The CFTC approved the provision of perpetual futures contracts on crypto-native platforms on the same day.