Regulators Greenlight 24/7 Markets, Ushering in Crypto Era

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued a statement signaling a potential shift toward 24/7 financial markets and the regulation of crypto derivatives. In the statement, the regulators emphasized the importance of aligning the U.S. market structure with the realities of a global, continuously operating economy. The release marks a significant step in the regulatory evolution of capital markets and reflects broader policy goals under the Trump administration to position the U.S. as the global "crypto capital" [1].

The joint guidance outlines that U.S. exchanges are not prohibited from facilitating the trading of certain spot crypto asset products under current law. This includes registered designated contract markets (DCMs), foreign boards of trade (FBOTs), and national securities exchanges (NSEs). The statement clarifies that neither the SEC nor the CFTC sees any legal barriers to the trading of spot crypto assets on these platforms [1]. This regulatory clarity is a crucial development for major exchanges like the Nasdaq and New York Stock Exchange, which are expected to potentially offer spot trading for major digital assets such as Bitcoin and Ethereum in the near future [1].

Industry stakeholders have welcomed the move, with Two Prime Digital Assets CEO Alexander Blume noting that the joint statement provides a green light for U.S. exchanges to offer spot trading in major cryptocurrencies. This development could significantly boost mainstream adoption by enabling access to digital assets through traditional financial venues. VanEck’s head of digital assets research, Matthew Sigel, highlighted that major traditional exchanges are likely to soon offer spot trading for BTC and ETH, signaling an expansion of the capital market infrastructure [1].

The regulatory initiative is part of broader efforts by the SEC and CFTC, including the SEC’s Project Crypto and the CFTC’s Crypto Sprint. These initiatives aim to modernize regulatory frameworks for digital assets and address gaps in market structure. The CFTC, in particular, has launched a public comment initiative to explore the feasibility of listing spot crypto asset contracts on DCMs [1]. The agencies also emphasized the importance of quantum-resistant architecture for digital assets, a forward-looking measure to protect against potential threats from quantum computing advancements [2].

The potential for 24/7 trading raises both opportunities and challenges. While it could increase capital velocity and align U.S. markets with the global financial landscape, it also introduces heightened risks for investors, particularly those with overnight or long-term positions exposed to traders in different time zones. The regulators acknowledge that expanding trading hours may vary in feasibility across different asset classes and underscore the need for a tailored, rather than uniform, approach [2].

Source:

[1] SEC and CFTC's new joint guidance 'opens the door for... (https://www.coinglass.com/ru/news/687463)

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