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CFTC Temporarily Allows Crypto Perpetual Futures to Be Converted Into True Perpetual Contracts
Summary
- The US Commodity Futures Trading Commission, or CFTC, issued a no-action letter allowing cryptocurrency perpetual futures contracts to be converted into "true digital commodity perpetual futures."
- Designated contract markets, or DCMs, may convert products by removing the expiration date from existing contracts, but they must still meet customer-protection and procedural requirements.
- The no-action letter requires the submission of amendments and self-certification of compliance under CFTC rules and will expire on June 30.
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The US Commodity Futures Trading Commission has taken steps to ease regulatory burdens on exchanges listing cryptocurrency perpetual futures contracts.
On June 12, the CFTC issued a no-action letter allowing designated contract markets, or DCMs, to convert existing perpetual-style digital commodity futures contracts into "true digital commodity perpetual futures."
The move extends the agency's recent efforts to clarify its regulatory approach to actively traded crypto futures. Under the guidance, DCMs may convert existing contracts by removing their expiration dates. They must still satisfy customer-protection and procedural requirements.
Exchanges must gather investor feedback, provide advance notice, give traders an opportunity to close positions and disclose risks. They cannot change other key terms of the existing contracts.
Exchanges also must submit amendments to the CFTC under the agency's rules and self-certify compliance with the requirements. The no-action letter expires on June 30.
Doohyun Hwang
cow5361@bloomingbit.ioKEEP CALM AND HODL🍀
