CFTC Gives DCMs No-Action Path for Digital Commodity Perpetual Futures

The Commodity Futures Trading Commission’s Division of Market Oversight issued no-action relief on 12 June for designated contract markets that want to convert existing perpetual-style digital commodity futures into true digital commodity perpetual futures.

The relief applies to DCMs seeking to remove expiration dates from existing contracts referencing bitcoin and other digital commodities with deep, active and continuous spot market trading. CFTC staff said a DCM may implement the amendments once it satisfies specified customer protection and procedural conditions.

Those conditions include soliciting feedback from market participants with open positions, giving advance notice and an opportunity to exit positions, providing appropriate risk disclosures, and making sure no other material contract terms are changed. DCMs also must file the amendments under CFTC Regulations 40.5 or 40.6 and certify compliance with the letter’s conditions.

The no-action positions expire on 30 June 2026.

Why it matters

Perpetual contracts are a major crypto trading format, but U.S. listed derivatives markets have been moving through a more formal product approval and self-certification path. The no-action letter gives regulated venues a short operational route to convert certain existing products while preserving notice, disclosure and exit protections for traders holding open positions.

For traders, the key issue is whether a venue’s conversion changes contract behavior, margin treatment, funding mechanics or liquidity around the transition date.

What to watch next

Watch which DCMs file amendments before the 30 June expiry, how they notify customers with open positions, and whether the CFTC extends or replaces the relief with longer-term guidance for listed digital commodity perpetuals.