The Commodity Futures Trading Commission (CFTC) is asking whether the perpetual futures structure it recently approved for bitcoin can also work for crude oil, underscoring significant open questions about how 24/7 derivatives would operate in the physical energy markets.
On May 29, the CFTC approved the first regulated bitcoin perpetual futures in the United States. Kraken launched its own CFTC-regulated perpetual contracts on June 15, marking a move of the previously offshore-dominated perpetual market into the regulated U.S. framework.
On June 22, the CFTC published a 22-page request for comment (RFC) containing 67 questions focused on whether a similar perpetual structure could be applied to crude oil. The document makes clear that the regulator has not reached a conclusion and is seeking industry input before deciding on any next steps.
Key concerns on pricing and market structure
The CFTC’s earlier approval of bitcoin perpetual futures was based on the argument that bitcoin has a deep, continuous, globally distributed spot market that delivers a reliable reference price at all times. By contrast, crude oil markets do not trade in the same way. The physical markets for benchmarks such as WTI and Brent operate in defined windows, and prices are assessed rather than continuously traded.
The RFC raises questions about how perpetual funding rates would function when the underlying reference market is closed, such as on weekends. It asks what happens to a funding rate when there is no observable cash price, and who would handle margin calls on Saturdays when Fedwire is not operating. The CFTC also queries whether price moves in weekend perpetual trading could transmit into benchmark prices that commercial hedgers rely on once markets reopen on Monday.
Negative pricing and legal classifications
The document explicitly revisits the April 2020 episode when WTI settled at negative $37.63 per barrel. While a standard futures contract can resolve such dislocations through expiration, a perpetual contract has no expiry. The RFC directly asks how a no-expiry crude oil perpetual would behave if prices turn negative.
Not all market participants support the expansion of perpetual futures. CME Group is suing the CFTC over its bitcoin perpetual approval, arguing that such contracts meet the Dodd-Frank definition of a swap and should be subject to the more stringent rules applicable to swaps.
Collateral and settlement infrastructure
The RFC also highlights operational challenges for any 24/7 derivatives product. The CFTC asks whether tokenised assets or stablecoins would need to be used as collateral during weekend trading, when traditional payment systems are unavailable. This question has direct implications for brokers and other intermediaries designing margin and settlement infrastructure around round-the-clock trading.
CFTC Chairman Mike Selig described the agency’s stance as supporting “responsible innovation, while preserving the protections against manipulation and market disruption that participants and the public rely on.” The energy perpetuals proposal is open for public comment for approximately 30 days after publication in the Federal Register. The CFTC has not indicated a timeline for any subsequent rulemaking.
