Regulators Push U.S. Markets Toward a 24/7 Global Future

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly signaled a transformative shift in the regulatory landscape, proposing the expansion of U.S. capital markets to operate 24/7. This move is part of a broader initiative to align U.S. financial markets with the evolving realities of a global, always-on economy, particularly in response to the rapid growth of digital asset markets such as cryptocurrency and decentralized finance (DeFi). The proposal aims to enhance market accessibility, reduce capital inefficiencies, and foster innovation while maintaining investor protections [1].

In a joint statement, SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham emphasized the need for greater regulatory coordination between the two agencies. They highlighted that the convergence of securities and non-securities markets necessitates a harmonized approach to regulation. This includes streamlining reporting and data standards, aligning capital and margin frameworks, and exploring innovation exemptions. The joint effort is seen as a critical step in ensuring that the U.S. remains at the forefront of financial innovation [1].

The agencies specifically noted that certain markets, including foreign exchange, gold, and crypto assets, already operate continuously. They acknowledged that the feasibility of extending trading hours may vary across asset classes and that a one-size-fits-all approach may not be suitable. Nevertheless, the proposal reflects an acknowledgment that U.S. markets need to adapt to the demands of a 24/7 global economy [1].

In addition to 24/7 trading, the SEC and CFTC also outlined plans to explore the regulation of perpetual derivatives—contracts without a defined expiry date—currently more common in offshore crypto markets. The agencies aim to determine whether these instruments can be brought onshore under U.S. regulatory frameworks, potentially enhancing market choice and bringing greater transparency to these products [1].

Another key focus area is portfolio margining, where the agencies proposed a coordinated framework to reduce capital inefficiencies by recognizing offsetting positions across product classes. This could enable broker-dealers and clearing members to more efficiently manage exposures, thereby lowering the cost of carrying hedged positions and freeing up balance sheet capacity. The agencies also highlighted the potential benefits of this approach in reducing capital lock-up while maintaining robust risk controls [1].

The joint initiative is backed by the President’s Working Group on Digital Asset Markets, which recommended that the SEC and CFTC collaborate to promote regulatory clarity and ensure that blockchain-based innovation remains within the United States. The agencies have scheduled a joint roundtable on regulatory harmonization for September 29, 2025, to further discuss these priorities and potential implementation strategies [1].

The proposal marks a significant departure from traditional market structures, which have long adhered to fixed trading schedules. Analysts suggest that the transition to a 24/7 model could increase capital velocity and liquidity but may also introduce new risks, such as exposing traders to market movements in different time zones while they are inactive [2]. The agencies have acknowledged these challenges and emphasized the importance of balancing innovation with investor protections [2].

Consumer advocacy groups, including Better Markets, have expressed concerns that the proposals could disproportionately favor crypto-native firms over traditional financial institutions. Amanda Fischer, policy director at the organization, noted that the reforms, if implemented, would likely take years to finalize due to their complexity. However, she cautioned that the changes could create uneven competitive advantages [2].

Despite these concerns, the SEC and CFTC remain committed to leveraging their regulatory frameworks to foster a more flexible and innovative financial ecosystem. The agencies have reiterated their readiness to engage with market participants, offering support for the development of new products and trading platforms that align with investor protection standards [1].

Source:

[1] Joint Statement from the Chairman of the SEC and Acting Chairman of the CFTC (https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525)

[2] SEC and CFTC Propose Shift to 24/7 Financial Markets (https://cointelegraph.com/news/sec-cftc-statement-24-7-capital-markets)