Bitcoin is the main asset of the cryptographic sector and is also universally defined by US regulators and courts as a merchandise, which puts it under the jurisdiction of the Future Trade Commission of Basic Products. That agency is now looking for public comments on whether you should open the broader world of derivatives to 24 -hour businesses, as already executed for Bitcoin and other digital assets.
Although the CFTC is expected to be established as a cryptography market regulator in the continuous effort of the Congress to establish the rules of the industry, the agency’s invitation for the comments issued on Monday does not explicitly discuss the supervision of digital assets. The application indicates that “technological advances and market demand” are promoting companies regulated by CFTC towards being able to handle transactions at all times.
“As I have said for a long time, the CFTC must adopt a prospective approach for changes in the market structure to ensure that our markets remain vibrant and resistant while protecting all participants,” said Interim President Caroline Pham, in a statement. President Donald Trump took advantage of it to direct the agency while waiting for the confirmation of the Senate of his nominee to the president, Brian Quintenz.
According to the application, trade without inactivity time presents a series of challenges for US markets that are not accustomed, including “what governance frames, personnel models and exchange technologies would be necessary to guarantee market integrity and operational resistance, as well as the fulfillment of all basic principles, under a continuous negotiation model.” This expansion would require companies to handle maintenance and live technology patches and human monitoring of systems and markets during extended hours, which are already fought for a long time by digital asset operations.
The CFTC would still need a change in the law before it could have direct authority on the real trade of the Bitcoin spot market and other tokens that are not classified as values, which would obtain a supervision of the Commission of Securities and Values. If the agency is ultimately an important trade regulator and the platforms and companies that manage customer transactions, that is a space in which the activity of 24 hours and seven days a week is already the model.
