CFTC Chair Caroline Pham on Market Stability, 24/7 Trading, and Crypto Regulation

Market Performance Amid Volatility

• 💡 The CFTC is pleased with how markets operated during recent volatility, noting they remained functional and liquid.
• ⚠️ Despite sharp spikes and record volume, markets showed resilience, with adequate margin levels, avoiding a repeat of the March 2020 "dash for cash."
• ✅ Regulators maintained close contact with market infrastructures and participants, reporting no significant operational issues during market stress.

US Market Safety and Health

• 🇺🇸 The US remains the world's reserve currency, with US Treasuries serving as a safe haven and the backbone of the global financial system.
• 📈 Contrary to short-term fluctuations, US markets are currently considered safer, sounder, and healthier than ever.

Exploring 24/7 Derivatives Trading

• 🚀 The CFTC is seeking public comment on allowing round-the-clock trading in derivatives markets and offering perpetual futures.
• 💡 This initiative is driven by a pro-innovation and pro-growth administration, moving from discussion to action on extended trading hours.
• 🧩 While 24/7 trading offers opportunities, especially for liquid asset classes like FX and crypto, regulators are carefully assessing operational readiness and potential risks.
• ⚠️ The CFTC will approach new innovations cautiously, especially for products not currently trading continuously, like traditional futures, ensuring product-specific considerations.

Crypto Regulation and Inter-Agency Cooperation

• 🤝 The CFTC and SEC aim to reset their relationship to traditional collaboration on jurisdictional issues within the crypto space, fostering regulatory clarity.
• 🌐 The administration's executive order on digital assets and the working group are key to this coordinated approach.

CFTC Efficiency and Budget Management

• 💰 CFTC's efficiency initiatives have already resulted in $18 million in savings, with projections to reach $50 million annually.
• 🛠️ Savings are achieved through common-sense contract reviews, eliminating redundancies, and prioritizing spending on essential needs like technology upgrades over non-essential services like extensive focus groups.