Regulators Align to Make U.S. Crypto Markets Competitive and 24/7

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have announced a coordinated effort to enhance regulatory clarity for the evolving crypto asset market, signaling a shift toward fostering innovation within the United States. The joint initiative, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, aligns with the recommendations of the President’s Working Group on Digital Asset Markets. It aims to harmonize the agencies’ frameworks, reduce jurisdictional overlap, and create pathways for registered exchanges to offer spot trading in digital assets. In a joint statement, the agencies emphasized that current federal law does not prohibit registered exchanges from facilitating such trading, thereby encouraging market participants to engage directly with regulators for guidance and compliance support.

Key areas of focus include expanding trading hours for certain markets, such as those that align with the 24/7 nature of cryptocurrency trading, and introducing regulatory clarity for prediction markets and event contracts. Perpetual contracts—derivatives without a defined expiry—commonly traded in offshore crypto markets, are also under review for potential onshoring. These contracts are seen as a tool to attract economic activity that has previously flowed overseas due to regulatory uncertainty. The agencies aim to develop frameworks that meet investor and customer-protection standards, ensuring U.S. markets remain competitive in the global financial landscape. This includes exploring opportunities for portfolio margining to reduce capital inefficiencies and allowing clearer risk management across product classes.

Decentralized finance (DeFi) is another focal point of the collaboration, with the SEC and CFTC considering “innovation exemptions” to create safe harbors for peer-to-peer trading of spot crypto assets and derivatives via DeFi protocols. Such exemptions would allow market participants to engage in direct trading without intermediaries, fostering innovation while preserving regulatory oversight. The agencies also affirmed that the right to self-custody digital assets is a core American value, aligning with broader policy goals to support market choice and technological advancement. These exemptions would provide immediate regulatory clarity for entrepreneurs, enabling them to build scalable and commercially viable models while the agencies work on long-term rulemaking.

The joint initiative also includes plans for a roundtable on regulatory harmonization, scheduled for September 29, 2025, to further discuss these and other potential areas of cooperation. This roundtable is a direct follow-up to the agencies’ recent joint staff statement that cleared the way for registered exchanges to facilitate trading in certain spot crypto asset products. The statement was praised by industry participants, who noted its potential to boost mainstream adoption and bring spot trading to traditional financial venues. For example, major exchanges such as Nasdaq and the New York Stock Exchange could soon offer trading in Bitcoin and Ethereum, which have previously been confined to specialized crypto platforms. This development is expected to reduce fragmentation and increase liquidity in the U.S. markets.

Critics, however, have raised concerns that these reforms could create an uneven playing field, potentially giving crypto-native firms an advantage over traditional financial institutions. Amanda Fischer of the consumer advocacy group Better Markets warned that implementing these proposals could take years due to their complexity. Despite these concerns, the agencies emphasized their commitment to balancing innovation with investor protection and market integrity. The joint effort is part of a broader strategy to position the United States as a global leader in digital financial technology, leveraging the country’s existing regulatory strengths and competitive market structure. The agencies are also engaging with Congress, which is working on a comprehensive crypto market structure bill, to align their efforts with legislative developments.

The SEC and CFTC’s joint statements and initiatives represent a significant shift in U.S. regulatory approach to crypto. By harmonizing their frameworks and reducing barriers to innovation, the agencies aim to reverse the trend of financial innovation moving overseas. This collaborative effort is expected to stimulate domestic economic activity, attract global capital, and ensure the U.S. remains a premier hub for financial technology. The regulatory clarity provided by these actions will allow market participants to innovate with greater confidence, while the agencies continue to refine their oversight to address emerging risks in the evolving digital asset ecosystem.

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, CFTC Propose Making U.S. Financial Markets 24/7 to Better Align With Crypto (https://finance.yahoo.com/news/sec-cftc-propose-making-u-151203303.html)

[3] SEC and CFTC explore ways to bring perpetual contracts onshore (https://cryptobriefing.com/perpetual-contracts-regulation-sec-cftc/)

[4] SEC and CFTC's new joint guidance 'opens the door for spot trading of Bitcoin' (https://www.theblock.co/post/369192/sec-cftc-new-joint-guidance)

[5] U.S. SEC, CFTC Combine Forces to Clear Registered Firms Trading of Spot Crypto (https://www.coindesk.com/policy/2025/09/02/u-s-sec-cftc-combine-forces-to-clear-registered-firms-trading-of-spot-crypto)

[6] SEC and CFTC to coordinate crypto efforts (https://blockworks.co/news/sec-cftc-crypto-coordination)