CFTC opens public comment on 24/7 energy futures and perpetual contracts tied to oil

On Monday, June 22, the Commodity Futures Trading Commission asked markets for feedback on two changes that could reshape energy derivatives trading in the United States: around-the-clock trading for standard futures contracts and perpetual contracts tied to physical energy commodities such as crude oil.

The request marks a major step toward testing crypto-style market structure in energy derivatives, which have traditionally traded under fixed schedules and expiry dates. Both proposals go beyond extended screen time for traders. They carry operational, settlement, and risk-management consequences for firms that use futures to hedge physical commodities.

CFTC asks if energy futures should trade nonstop

The CFTC’s request for comment is divided into two paths, according to the agency’s June 22 announcement.

The first focuses on extending standard energy futures contracts to a 24/7 trading schedule while keeping their existing expiration dates, delivery rules, and settlement arrangements largely unchanged.

The second focuses on perpetual contracts tied to physical energy commodities that can be stored or delivered. Unlike standard futures, perpetual contracts have no fixed expiry date.

“A clear, data-driven record will help the Commission better understand these developments’ implications and impact in the market,” CFTC Chairman Michael S. Selig said in the announcement. He described the process as an effort to balance innovation with market integrity.

Written comments are due within 30 days after the request is published in the Federal Register.

Oil perpetuals raise risks Bitcoin does not

Perpetual contracts are common on offshore crypto exchanges, where they use funding-rate mechanisms to keep contract prices aligned with spot markets. That model works more naturally for assets such as Bitcoin, which trade globally around the clock and do not involve storage, delivery, or physical settlement.

Crude oil has storage costs, pipeline constraints, delivery obligations, and spot markets that can be thinner during weekends and overnight hours. Those conditions make around-the-clock pricing more complicated than it is for purely digital assets.

A staff advisory accompanying the CFTC’s May perpetual-contract releases warned that contracts settling during non-peak hours of the underlying market can carry higher risks of price distortion and manipulation, according to analysis published in the National Law Review.

That is why physical energy perpetuals raise harder questions than Bitcoin perpetuals. The contract design must account not only for price discovery, but also for how the underlying commodity is stored, delivered, and hedged in real markets.

Bitcoin perps set the regulatory template

In late May, the CFTC allowed the first Bitcoin perpetual futures contract to be listed on a U.S. designated contract market. At the same time, the agency issued a policy statement explaining how perpetual contracts should be reviewed.

That decision created a regulatory template for digital commodity perpetuals. But the CFTC also made clear that perpetual contracts based on other asset classes require closer scrutiny.

For contracts tied to non-digital assets, including physical energy commodities, the agency has pointed to the stricter Regulation 40.3 review process. That means exchanges cannot simply copy the Bitcoin perpetual model and apply it to crude oil or other deliverable commodities.

The June 22 request for comment builds on that distinction. The CFTC is asking whether the market structure developed around digital assets can work in commodities, where delivery, storage, and physical-market liquidity create risks that crypto contracts do not face.

Old commodity rules meet crypto market structure

The CFTC’s authority over derivatives comes from the Commodity Exchange Act, which originally governed agricultural futures. Over time, Congress expanded the agency’s reach to include energy, metals, financial derivatives, and swaps.

After the 2008 financial crisis exposed gaps in derivatives oversight, the Dodd-Frank Act gave the CFTC a larger role in regulating swaps and clearing. Today, the agency oversees futures and options on assets ranging from wheat to West Texas Intermediate crude.

That history matters because the CFTC is now considering whether a trading model popularized by crypto can be adapted to markets built around physical delivery.

The question is not only whether energy contracts can trade 24/7. It is whether exchanges, clearinghouses, brokers, and commercial hedgers can manage margin, liquidity, settlement, and market surveillance when trading no longer stops at the end of the business day.

The comment window becomes the next test

The 30-day comment period is expected to draw responses from exchanges, energy traders, clearinghouses, brokers, commercial hedgers, and crypto market participants.

The crypto industry has supported perpetual contracts as a way to bring offshore trading activity into regulated U.S. markets. On June 12, the CFTC also issued no-action relief giving designated contract markets guidance on converting certain digital commodity perpetual-style futures into perpetual contracts, though that temporary relief expires on June 30.

Energy markets face a different test. The CFTC must decide whether 24/7 trading and perpetual contracts can work for commodities that move through pipelines, storage tanks, and delivery hubs, not only through blockchains.

The outcome could shape how far U.S. derivatives markets move toward always-on trading. If the CFTC proceeds cautiously, Bitcoin perpetuals may remain a special case. If the agency opens the door wider, energy futures could become the next major market to absorb crypto-native trading design.