Regulators Push U.S. Markets Toward Always-On Global Rhythm

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have proposed a transformative shift in the financial markets landscape, aiming to move toward 24/7 trading for certain asset classes. The joint statement from SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham highlights the increasing convergence between securities and non-securities markets, driven by the rapid adoption of crypto assets and decentralized finance (DeFi) protocols. The regulators underscore that markets such as forex, gold, and cryptocurrencies already operate continuously, and aligning U.S. markets with a "global, always-on economy" could enhance capital velocity and investor access. However, the feasibility of expanding trading hours will vary by asset class, with the regulators cautioning against a one-size-fits-all approach.

A central component of the proposal is the potential introduction of perpetual contracts—derivatives without fixed expiration dates—into U.S. markets. These are commonly traded in offshore crypto markets but face jurisdictional and definitional constraints domestically. The agencies suggest harmonizing regulatory frameworks to enable these contracts to trade across SEC- and CFTC-regulated platforms, potentially capturing economic activity that has previously flowed to foreign exchanges. Additionally, the CFTC and SEC aim to provide clarity for prediction markets offering event contracts, including those tied to securities, to foster responsible innovation. The agencies also propose "innovation exemptions" for DeFi protocols to allow peer-to-peer trading of spot crypto and derivatives, emphasizing the American value of self-custody and aligning with the Trump administration's July 2025 report on digital asset policy.

The joint initiative reflects a broader effort to harmonize regulatory approaches and reduce fragmentation in oversight. The agencies highlight the need to streamline product and venue definitions, align capital and margin frameworks, and adopt coordinated innovation exemptions. The CFTC and SEC plan to host a joint roundtable on September 29, 2025, to discuss these and other areas of regulatory coordination, including portfolio margining, which could reduce capital inefficiencies by allowing market participants to net exposures across asset classes. Such measures, the regulators argue, could enhance market resiliency, reduce costs, and encourage cross-border competitiveness.

While the proposals mark a significant step toward modernizing U.S. financial regulations, experts caution that implementation will likely be complex and time-consuming. Amanda Fischer, policy director at Better Markets, noted that the reforms could take years to enact, given their multifaceted nature. She also raised concerns about the potential for these changes to disproportionately benefit crypto-native firms over traditional finance (TradFi) institutions. Meanwhile, the CFTC has already taken steps to facilitate offshore crypto exchanges serving U.S. clients through the Foreign Board of Trade (FBOT) framework, which has been in existence since the 1990s. This initiative aligns with the broader goal of expanding access to digital assets while maintaining investor protections.

The regulatory developments come amid a growing emphasis on crypto asset safety and infrastructure resilience. The SEC’s Crypto Assets Task Force is reportedly reviewing measures to quantum-proof digital assets against potential threats from quantum computing, underscoring the urgency of safeguarding cryptographic protocols. These efforts are part of a wider push to establish a comprehensive regulatory framework for the digital economy, with the SEC and CFTC playing key roles in defining the oversight landscape for both traditional and crypto markets.

Source:

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

[2] Wall Street may soon trade like crypto, SEC and CFTC (https://finance.yahoo.com/news/wall-street-may-soon-trade-183522452.html)

[3] Joint Statement from the Chairman of the SEC and Acting (https://www.cftc.gov/PressRoom/SpeechesTestimony/phamatkinsstatement090525)

[4] SEC, CFTC Propose Making US Financial Markets 24/7 to (https://finance.yahoo.com/news/sec-cftc-propose-making-u-151203303.html)