In February, the CFTC added certain payment stablecoins issued by national trust banks to its list of eligible collateral.
So, it turns out that the world of trading is about to get a little more exciting—or perhaps a little more chaotic, depending on how you look at it. CFTC Chairman Michael Selig recently dropped some intriguing thoughts on the future of trading at the New York Federal Reserve’s U.S. Treasury Market Conference. Spoiler alert: he thinks crypto assets and precious metals might just be the perfect candidates for 24/7 trading in U.S. derivatives markets.
Now, if you’ve ever tried to trade stocks after hours, you know it’s like trying to find a unicorn at a petting zoo. But with the rise of cryptocurrencies, Selig suggests that we might be ready to embrace a trading model that never sleeps—much like your average college student during finals week.
What’s the deal with 24/7 trading, you ask? Well, for starters, it means that you can buy and sell these assets any time of the day or night. Picture this: it’s 2 AM, you’re half-awake, and you suddenly have an urge to invest in Bitcoin because, let’s face it, who needs sleep when you can speculate on digital currency?
Selig’s comments come on the heels of a June consultation focused on 24/7 energy futures and related perpetual contracts. He’s not just throwing out buzzwords here; he’s actually pointing to a broader trend of “mass tokenization” in finance. That’s right, folks—soon, everything from your grandma’s prized collection of porcelain cats to your neighbor’s questionable lawn gnome may be tokenized and up for trading. Just kidding (sort of).
But while crypto and precious metals are getting the green light for around-the-clock trading, Selig has some reservations. He noted that not all products are cut out for this level of constant trading. Agricultural products, energy, and some financial contracts might need to stick to a more traditional trading schedule. I mean, can you imagine trying to trade corn at 3 AM? Talk about a recipe for disaster.
What does this mean for investors? Well, if you’ve been waiting for the chance to trade crypto or precious metals in your pajamas at 3 AM, then congratulations! You might just be living in the golden age of trading. But it also means that regulations will need to adapt to ensure that this new trading landscape is safe and fair. Because let’s be honest, the last thing we need is a bunch of 3 AM traders causing chaos in the markets.
So, as we look ahead to this potential shift in trading practices, it’s clear that the financial world is evolving faster than you can say ‘blockchain.’ While there are still many details to sort out, one thing is for sure: the future of trading is going to be anything but boring. And who knows? Maybe one day we’ll all be trading our favorite assets while binge-watching the latest series on Netflix. Now that’s a future I can get behind.
In conclusion, keep an eye on the developments in the trading world. Whether you’re a seasoned investor or just someone who dabbles in crypto every now and then, the possibility of 24/7 trading could open up a whole new world of opportunities. Just remember, with great power comes great responsibility—or at least a lot of caffeine to keep you alert during those late-night trades!
Inspired by: “Crypto and precious metals may currently suit 24/7 trading, CFTC chair Selig says” (r/Crypto)