Regulators Push for 24/7 Markets to Reignite U.S. Financial Edge

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have jointly proposed a “24/7 Markets” initiative aimed at aligning U.S. securities trading with the global, nonstop nature of crypto and other financial markets. In a joint statement, SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham emphasized the need for regulators to adapt as financial markets increasingly converge. The current U.S. market schedule, which has followed strict weekday hours since 1985, could expand to operate continuously, provided operational and liquidity challenges are addressed. The agencies noted that such a shift could enhance U.S. competitiveness but cautioned that the feasibility of 24/7 trading may vary across asset classes, and a one-size-fits-all approach might not be suitable [1].

The proposals also include easing regulations for prediction markets, allowing perpetual derivatives, and creating "innovation exemptions" for decentralized finance (DeFi) platforms. These changes aim to accommodate the growing demand for diverse financial instruments and reduce legal and regulatory fragmentation. Perpetual derivatives, commonly traded in offshore crypto markets, are currently restricted in the U.S. and could be permitted on regulated platforms if investor protections are ensured [2]. Additionally, the CFTC and SEC plan to streamline reporting standards, harmonize capital and margin frameworks, and facilitate cross-market strategies through portfolio margining. This could reduce capital inefficiencies and encourage broader participation by both institutional and retail investors [3].

The regulatory shifts are part of a broader effort to foster financial innovation and respond to the recommendations of the Trump administration’s Working Group on Digital Asset Markets report. The initiative aligns with the agencies’ joint statement from earlier in the week, which clarified that current U.S. law does not prohibit spot crypto trading on federally regulated exchanges. This marks a significant departure from the previous regulatory ambiguity and signals a more accommodating stance toward digital asset integration [1].

Critics, however, have raised concerns about potential risks. Amanda Fischer, policy director at the consumer advocacy group Better Markets, described the proposals as “extremely dangerous” and warned that they could give crypto-native firms an unfair edge over traditional financial institutions (TradFi). She emphasized the complexity of implementing the reforms and the potential for long-term instability, particularly with the rise of “super-app” models that merge multiple financial services into a single platform [1].

The SEC and CFTC plan to hold a joint roundtable on September 29, 2025, to discuss these regulatory proposals in detail. The event, open to the public and webcast live, will address how the U.S. can remain a global leader in financial innovation by fostering a unified regulatory environment. The roundtable is also part of broader efforts, including the SEC’s Project Crypto and the CFTC’s Crypto Sprint, to bring novel products and services back to the U.S. market [3].

The shift toward 24/7 trading and regulatory harmonization reflects an evolving global financial landscape where digital assets and traditional markets intersect increasingly. While the U.S. has historically been a leader in financial innovation, recent trends have seen novel products shift overseas due to fragmented oversight. The proposed reforms aim to reverse this trend by creating a more coherent and agile regulatory framework. If implemented, the changes could transform the U.S. market’s structure and position it to better compete in the global digital finance arena [1].

Source:

[1] SEC, CFTC Propose Making U.S. Financial Markets 24/7 to ... (https://decrypt.co/338264/sec-cftc-propose-u-s-financial-markets-24-7-keep-crypto)

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

[3] SEC, CFTC seek to 'harmonize' on DeFi, perps contracts ... (https://www.theblock.co/post/369625/sec-cftc-seek-to-harmonize-on-defi-perps-contracts-and-more-plan-roundtable-later-this-month)