Updated
Updated · Markets Media · Jun 15
CFTC Grants June 30 Relief for Digital Commodity Perpetual Futures Conversion
Updated
Updated · Markets Media · Jun 15

CFTC Grants June 30 Relief for Digital Commodity Perpetual Futures Conversion

2 articles · Updated · Markets Media · Jun 15

Summary

  • The CFTC’s Division of Market Oversight said designated contract markets can strip expiration dates from existing perpetual-style digital commodity futures and convert them into true perpetual futures under a no-action letter.
  • The relief follows recent CFTC actions clarifying how true perpetual futures tied to bitcoin and other digital commodities with deep, active and continuous spot trading should be regulated.
  • DCMs must first seek feedback from traders with open positions, give advance notice and an exit opportunity, provide risk disclosures, and keep all other material contract terms unchanged.
  • They also must file the amendments under Regulations 40.5 or 40.6 and certify compliance with the letter’s conditions; the no-action positions expire on June 30, 2026.

Insights

How will the CFTC and SEC police the blurred lines between commodities and securities in crypto?
Can U.S. regulated exchanges win the $90 trillion perpetuals market from their offshore rivals?
What new systemic risks do crypto perpetuals bring to the traditional U.S. financial system?