Investing.com – The Commodity Futures Trading Commission said Friday that perpetual futures contracts for cryptocurrencies can trade on registered onshore platforms if they meet certain conditions, bringing a popular trading instrument to the United States that has until now existed almost entirely overseas.

The CFTC’s Division of Clearing and Risk, Division of Market Oversight, and Market Participants Division issued a staff advisory Friday regarding 24/7 trading, clearing, and settlement. The agency issued a separate policy statement saying it will review contracts on a case-by-case basis.

The advisory lays out guidelines on 24/7 trading, clearing and settlement to help registered firms launch products and comply with US laws. The divisions said they seek to encourage responsible innovation in these markets while reminding designated contract markets, swap execution facilities, derivatives clearing organizations, and futures commission merchants of their regulatory obligations under the Commodity Exchange Act and Commission regulations.

The advisory emphasizes regulatory obligations and staff expectations for entities seeking to extend trading and clearing on a 24/7 basis. It discusses certain differences between asset classes that should be considered when analyzing the suitability of 24/7 trading, clearing, and settlement.

Derivatives referencing crypto assets may be well-suited for 24/7 trading due to their digital infrastructure and global reach, while other derivatives markets, such as in agricultural products, may be less suited for 24/7 trading due to their unique customer bases, regional nature, and the specialized trading and hedging practices in those markets, the advisory said.

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