Regulators Push to Erase Borders in 24/7 Digital Finance Era

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have unveiled a joint initiative aimed at modernizing financial markets by proposing 24/7 trading for securities and crypto derivatives. This move is part of a broader strategy to align U.S. regulatory frameworks with the realities of a global, digital economy where markets such as foreign exchange, gold, and crypto assets already operate continuously. The proposal underscores the regulators’ recognition that scaling on-chain finance requires a shift from traditional market schedules to a more flexible, around-the-clock environment [1].

In a joint statement, SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham emphasized the need for regulatory coordination to eliminate “no man’s land” in oversight and reduce uncertainty for market participants. They highlighted that the SEC and CFTC must work in lockstep to ensure that fragmented regulations do not stifle innovation. The agencies are also considering harmonizing definitions, reporting standards, and capital frameworks across both securities and commodities markets. By doing so, they aim to streamline operations and reduce inefficiencies that currently force traders to manage collateral separately on SEC- and CFTC-regulated platforms [1].

Among the key areas of focus is the expansion of trading hours, which the regulators believe could enhance U.S. competitiveness in global markets. However, they acknowledged that a uniform approach may not be feasible across all asset classes. For instance, while forex and crypto markets operate 24/7, traditional equity markets have followed a weekday-only schedule since 1985. The proposal does not mandate a one-size-fits-all model but explores the feasibility of extending hours where appropriate, contingent on operational and liquidity factors [3].

The proposal also includes a push for clarity around event contracts and perpetual derivatives—derivatives without a defined expiry date, commonly traded offshore but restricted in the U.S. The agencies are considering steps to onshore these products, ensuring they meet investor protection standards while allowing U.S. traders access to transparent leverage limits and robust risk management structures. This could bring economic activity currently flowing to offshore platforms back to the U.S., aligning regulatory policies with international practices [1].

Another significant initiative is the development of “innovation exemptions” for decentralized finance (DeFi) protocols. These exemptions would allow peer-to-peer trading of spot crypto assets and derivatives without intermediaries, creating safe harbors for market participants to develop commercially viable models while the agencies work on long-term rulemaking. The move aligns with the Trump administration’s July 2025 report on digital assets, which called for a coordinated regulatory approach to foster innovation [2].

The joint effort is part of a larger regulatory strategy that includes the SEC’s Project Crypto and the CFTC’s Crypto Sprint, both aimed at modernizing oversight while promoting innovation. Additionally, the Federal Reserve’s upcoming conference on stablecoins and tokenized financial services signals a broader federal alignment on crypto regulation. These coordinated efforts are seen as a turning point for the U.S. regulatory landscape, which has historically lagged in providing clear pathways for digital asset innovation [4].

Critics, however, caution that the reforms could take years to implement due to their complexity. Amanda Fischer of Better Markets warned that the changes could favor crypto-native firms over traditional financial institutions. Nevertheless, the regulators remain committed to fostering a competitive and investor-protected environment, with the September 29 roundtable serving as a critical first step in this process [3].

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 and CFTC Propose Shift to 24/7 Financial Markets for Crypto Derivatives (https://cointelegraph.com/news/sec-cftc-statement-24-7-capital-markets)

[3] SEC, CFTC Propose Making U.S. Financial Markets 24/7 to Align with Crypto Market (https://finance.yahoo.com/news/sec-cftc-propose-making-u-151203303.html)

[4] Is U.S. Crypto Regulation Finally Here? (https://cryptorank.io/news/feed/e6393-is-us-crypto-regulation-finally-here)