CFTC Explores 24/7 Trading as Crypto’s Always-On Model Gains Influence

Key Takeaways

• The CFTC is seeking public comments on 24/7 trading in derivatives markets.
• Crypto’s always-on model has influenced calls for extended trading hours in traditional finance.
• The CFTC’s request highlights growing interest in perpetual futures and market reform.

The Commodity Futures Trading Commission (CFTC) is considering a significant shift in market operations that could bring 24/7 trading to traditional derivatives markets.

This shift comes in response to the growing influence of crypto markets, which have operated around the clock since their inception.

In a request for public feedback issued on April 21, the CFTC is exploring how a 24/7 model could work in the derivatives space.

Acting Chairman Caroline Pham emphasized the importance of staying ahead of evolving market trends.

“The CFTC must take a forward-looking approach to shifts in market structure to ensure our markets remain vibrant and resilient while protecting all participants,” Pham said, noting the growing interest in continuous trading hours.

The 24/7 Crypto Standard

Unlike traditional markets that close at the end of the trading day, the crypto markets never sleep.

They’ve set a new standard for accessibility, allowing investors to trade whenever and wherever they want, with transactions happening seamlessly across time zones.

This round-the-clock availability is part of what’s made crypto attractive to global retail traders and institutions alike.

In contrast, traditional stock markets like the NYSE and CME have fixed hours, typically 8-10 hours daily, with breaks and days off. Fund transfers also take longer in traditional finance, sometimes taking days to settle.

As this gap in accessibility becomes more apparent, traditional financial institutions are considering the benefits of extending trading hours, signaling a shift toward more continuous access to markets.

TradFi Responds

Nasdaq and Robinhood are already pushing the envelope, with extended hours on some products. The SEC has even approved longer trading windows for equities, marking the beginning of a broader shift in TradFi.

The idea of continuous market access, once exclusive to crypto, is slowly being adopted by the mainstream finance world, but it’s clear the change will be gradual.

This push for more flexible hours reflects a growing recognition that the old way of doing things, closing markets at night, no longer serves the global, always-connected investor base.

CFTC’s Role and Rationale

The CFTC’s call for public comment is not just a formality—it’s a chance for industry experts and everyday investors to weigh in on what 24/7 trading could mean for the future.

The request seeks feedback on everything from liquidity to customer protection to clearing systems, especially as retail traders become more involved.

Of course, there are concerns. The CFTC is considering how to manage the risks of around-the-clock trading, particularly in terms of market volatility and risk management.

But Pham sees potential benefits too: more liquidity, increased accessibility, and the ability to keep pace with global competitors.

Another area the CFTC is looking into is perpetual futures, a derivative product that’s native to crypto.

These contracts don’t have expiration dates and have become a core feature of crypto exchanges.

The CFTC is asking for feedback on the risks and rewards of these types of products, particularly since they’re still new in the U.S. market. If they become more mainstream, they could have a big impact on how both crypto and traditional markets operate.

Industry Implications

If the CFTC moves forward with 24/7 trading, U.S. crypto platforms could gain a competitive edge.

It could also level the playing field with offshore exchanges that already offer continuous trading.

More broadly, the CFTC’s exploration of market reforms signals a deeper integration between crypto-native structures and traditional U.S. regulations.

With the deadline for public comments set for May 21, the request shows that the CFTC is taking crypto’s influence seriously. If this shift happens, it could reshape how we think about trading, making markets look a lot more like the always-on, 24/7 crypto space.