CFTC Issues Exemptions Allowing Crypto Exchanges to Convert Futures to True Bitcoin Perpetual Contracts

BTC5.05%

According to the U.S. Commodity Futures Trading Commission (CFTC), the agency recently issued exemptions to designated contract markets (DCMs) allowing them to convert existing digital commodity futures into true perpetual contracts, applicable to Bitcoin and other cryptocurrencies with deep and active spot markets.

Under the exemptions, DCMs must meet specific requirements when removing contract expiration dates, including soliciting feedback from position holders, providing advance notice and settlement opportunities, disclosing risks adequately, and refraining from modifying other key contract terms.

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