CFTC Temporarily Eases Regulatory Burdens for Crypto Perpetual Futures

The US Commodity Futures Trading Commission (CFTC) has issued a no-action letter allowing designated contract markets to convert existing cryptocurrency perpetual futures contracts into 'true digital commodity perpetual futures.'

This move is seen as an effort by the CFTC to ease regulatory burdens on exchanges listing crypto derivatives.

The conversion process involves removing the expiration date from existing contracts, but DCMs must still meet customer-protection and procedural requirements. Exchanges must submit amendments to the CFTC under its rules and self-certify compliance with the requirements.

The no-action letter expires on June 30 and requires exchanges to gather investor feedback, provide advance notice, give traders an opportunity to close positions, and disclose risks. Key terms of existing contracts cannot be changed during this process.