CFTC issues exemption letter allowing conversion of digital commodity perpetual futures contracts

The US CFTC Market Regulation Department has issued a No Action Letter, allowing Designated Contract Markets (DCMs) to convert existing digital commodity perpetual style futures contracts into genuine digital commodity perpetual futures contracts. The conversion conditions include soliciting opinions from holding participants, giving advance notice and exit opportunities, providing risk disclosure, and not modifying other substantive contract terms. DCM is required to submit revised documents and certify compliance, and this exemption is valid until June 30, 2026.