Regulators Eye Wall Street's Clock, Crypto's Influence Strikes Midnight

The U.S. financial regulatory landscape is undergoing a potential transformation as the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) consider expanding trading hours to operate around the clock. On September 5, SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham jointly issued a statement suggesting that U.S. financial markets could adopt a 24/7 trading model similar to the cryptocurrency market, foreign exchange, and gold trading. This shift, if implemented, would mark a significant departure from the traditional weekday-based trading schedules that have defined Wall Street for over a century [1].

The proposal acknowledges the growing influence of continuously active markets, particularly in the digital asset space, and aims to align U.S. financial markets with the evolving dynamics of a global, always-on economy. However, the regulators emphasized that the adoption of such a model would not necessarily follow a uniform approach. They noted that extended trading hours might be more suitable for certain asset classes than others and cautioned against a “one-size-fits-all” strategy [2].

In addition to 24/7 trading, the regulators also highlighted the need for regulatory clarity in the space of prediction markets and perpetual contracts. These instruments, commonly found in offshore crypto markets, could potentially be brought onto regulated U.S. platforms under the new framework. The agencies are also considering allowing U.S. exchanges to facilitate trading in spot crypto assets, further bridging the gap between traditional and non-traditional financial markets [1].

Another key initiative outlined in the statement is the exploration of “innovation exemptions” that would enable peer-to-peer (P2P) trading of crypto assets and derivatives through decentralized finance (DeFi) protocols. Such exemptions would allow for more direct and decentralized trading mechanisms, aligning with broader efforts to foster innovation in the financial sector. The regulators also emphasized that the right to self-custody assets remains a core American value, reinforcing the importance of individual control over one’s financial holdings [1].

The proposed changes signal a broader regulatory strategy aimed at addressing the convergence of securities and non-securities markets. As digital assets gain mainstream traction, the SEC and CFTC are increasingly coordinating their efforts to ensure that U.S. financial systems remain competitive and adaptable. This development follows another joint statement issued on September 2, in which the regulators confirmed that current U.S. laws do not prohibit registered exchanges from facilitating the trading of certain spot crypto assets [2].

While the proposals represent a forward-looking regulatory stance, experts have noted that implementation could take several years due to the complexity of the reforms. Amanda Fischer of the consumer advocacy group Better Markets pointed out that the changes could provide crypto-native firms with a competitive edge over traditional financial institutions. Nonetheless, the statements reflect a clear intent to modernize U.S. financial markets in line with the rapid evolution of the global digital economy [2].

Source:

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

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