Crypto Funds Clash with Traditional Regulators over 24/7 Market Operations

Crypto funds and traditional financial regulators are struggling to adapt to the 24/7 nature of cryptocurrency markets, causing reporting risks and compliance challenges. The Securities and Exchange Commission (SEC) has listed Form PF amendments as an active item on its 2026 agenda, while the Commodity Futures Trading Commission (CFTC) is seeking comments on how to handle 24/7 trading for standard futures and perpetual contracts.

Form PF, a regulatory framework designed for traditional hedge funds, assumes a fixed business day schedule, which clashes with the continuous market operations of crypto funds. This mismatch creates problems when calculating exposure, liquidity buckets, and significant moves, as well as event clocks that run through weekends and holidays. Regulators are seeking to address these issues, but in the meantime, crypto fund managers are developing workarounds to stabilize their reporting processes.

To mitigate these risks, fund managers are implementing a daily NAV (net asset value) time, often at 00:00 UTC, using multi-venue pricing and special accounting for staking and liquidity positions. However, this patchwork solution does not entirely resolve the issues when events land on weekends or holidays.