CFTC Allows DCMs to Convert Digital Commodity Perpetual Futures, Exemption Valid Through June 30

According to the CFTC, the U.S. Commodity Futures Trading Commission's Division of Market Oversight recently issued a no-action letter allowing designated contract markets (DCMs) to convert existing digital commodity perpetual-style futures contracts into true perpetual futures contracts by removing expiration dates. The conversion must comply with investor protection and procedural requirements, including soliciting participant input, providing advance notice with exit opportunities, and disclosing associated risks. The exemption remains valid through June 30, 2026.
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