U.S. CFTC Opens Up Crypto Perpetual Contracts to 24/7 Trading

The U.S. Commodity Futures Trading Commission (CFTC) has announced new guidelines allowing crypto perpetual contracts to be traded 24/7, marking a significant shift in the regulatory landscape.

This move is expected to increase trading volumes significantly, with estimates suggesting between $60 trillion and $85 trillion in trading volume by 2025. The CFTC's guidance also includes requirements for regulated platforms to adhere to specific rules and risk management arrangements.

Several major crypto exchanges, including Coinbase, Kalshi, and Kraken, have announced plans to launch new perpetual futures products or expand their existing offerings to meet the new regulatory requirements.

The CFTC's decision has been met with praise from industry insiders, who see it as a step towards creating a more inclusive and efficient crypto market. However, some critics have raised concerns about the potential risks associated with 24/7 trading and the need for enhanced investor protection.