Regulators Push for 24/7 Markets: Wall Street Meets Crypto Rhythm

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly signaled a potential shift toward 24/7 financial markets, a development that could reshape trading in Bitcoin and crypto derivatives. In a statement released on September 5, 2025, the regulators outlined their interest in aligning U.S. financial markets with the 24/7 nature of global, digital trading environments. The proposal highlights the need for regulatory clarity on event contracts and perpetual futures, which are key instruments in the crypto derivatives space [1]. Perpetual futures, in particular—futures contracts without an expiry date—are already common in offshore markets and could be integrated into U.S. trading frameworks [2].

The joint initiative is a direct response to the growing convergence of traditional and digital asset markets. As stated by SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham, the move reflects an acknowledgment that certain markets, such as foreign exchange, gold, and crypto assets, already operate continuously. The agencies emphasized that while extending trading hours could enhance capital velocity and align with the global economy’s evolving dynamics, it may not be equally viable across all asset classes, necessitating a tailored approach [1].

The regulatory shift is part of a broader interagency effort under the Trump administration to create a comprehensive crypto framework. In July 2025, the administration published a crypto report directing the SEC and CFTC to establish cooperative oversight, with the CFTC given clear authority to regulate spot crypto markets and the SEC overseeing tokenized securities. In August, the CFTC took a step forward by outlining a pathway for offshore crypto exchanges to serve U.S. clients through the Foreign Board of Trade (FBOT) framework [1]. This framework, which has been in place since the 1990s, allows regulated offshore exchanges to apply for a U.S. license, potentially expanding access to crypto markets for American investors.

Beyond market structure, the regulators are also exploring ways to foster innovation in trading mechanisms. The agencies proposed “innovation exemptions” to allow peer-to-peer (P2P) trading of spot and leveraged crypto assets and derivatives via decentralized finance (DeFi) protocols. These exemptions aim to preserve the core American value of self-custody while enabling more flexible and efficient trading structures [2]. Such reforms could have far-reaching implications for the crypto ecosystem, potentially increasing market depth and reducing reliance on centralized intermediaries.

However, the shift to 24/7 trading is not without risks. The continuous operation of markets could expose traders to heightened volatility and increased capital exposure, particularly for those holding overnight or long-term positions. Market participants in different time zones could execute trades against inactive traders, potentially destabilizing existing strategies [1]. These concerns underscore the need for robust risk management frameworks and regulatory safeguards to ensure market stability and investor protection.

In parallel with the SEC and CFTC’s efforts, the crypto industry is also advancing in terms of infrastructure and liquidity. Coincall, a rapidly growing crypto options exchange, has strengthened its market liquidity through strategic partnerships with major liquidity providers such as Ampersan, DWF Labs, FalconX, and Kronos Research. These collaborations have enhanced the platform’s trading efficiency, market depth, and product breadth, positioning Coincall as a significant player in the global crypto derivatives market [3].

On a related note, Galaxy Digital has taken a groundbreaking step by tokenizing its Class A Common Stock on the Solana blockchain with the assistance of Superstate, a registered transfer agent. This move marks the first instance of a publicly listed U.S. equity being tokenized on a major public blockchain. Galaxy’s tokenization effort is intended to bridge traditional capital markets with decentralized finance, enabling shareholders to hold and transfer shares in a self-custody format. The initiative is also part of broader regulatory engagement, as the SEC is currently reviewing how to adapt existing rules to accommodate blockchain-based trading systems [4].

The regulatory environment for crypto assets is evolving rapidly. Both the SEC and CFTC are actively engaged in discussions on the future of 24/7 markets and the integration of tokenized assets. The agencies have also expressed interest in quantum-resistant architecture to safeguard cryptographic protocols from potential threats posed by quantum computing [1]. The SEC’s Crypto Assets Task Force is currently evaluating proposals to quantum-proof digital assets before existing encryption standards become obsolete.

In sum, the joint efforts of the SEC and CFTC to modernize financial market structures reflect a recognition of the transformative potential of blockchain technology and decentralized trading. While challenges remain—particularly around regulatory clarity and risk management—the push toward a 24/7 market and the integration of tokenized assets are expected to shape the future of both traditional and digital asset trading.

Source:

[1] SEC and CFTC Propose Shift to 24/7 Financial Markets. (2025, September 5). CoinDesk. https://cointelegraph.com/news/sec-cftc-statement-24-7-capital-markets

[2] Wall Street May Soon Trade Like Crypto, SEC and CFTC Propose 24/7 Model. (2025, September 5). TheStreet. https://www.thestreet.com/crypto/markets/wall-street-may-soon-trade-like-crypto-sec-and-cftc-propose-24-7-model

[3] Coincall Strengthens Market Liquidity through Strategic Partnerships. (2025, September 5). Morningstar. https://www.morningstar.com/news/globe-newswire/9524031/coincall-strengthens-market-liquidity-through-strategic-partnerships-and-successful-integration-with-leading-global-liquidity-providers

[4] Galaxy Tokenizes GLXY Stock on Solana with Superstate. (2025, September 5). Galaxy Research. https://www.galaxy.com/insights/research/tokenized-glxy