Regulators Unveil Blueprint for 24/7 U.S. Financial Future

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have announced a historic joint initiative to explore the development of 24/7 capital markets, marking a significant departure from traditional trading hours and regulatory frameworks. The collaborative effort aims to align U.S. financial markets with the realities of a global, always-on economy, particularly in the wake of the 24/7 operations of cryptocurrency and foreign exchange markets. This initiative, unveiled in a joint statement on September 5, 2025, underscores a broader strategy to harmonize regulatory oversight and foster innovation across asset classes [1].

The joint statement, issued by SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham, highlights the increasing convergence between securities and non-securities markets. The agencies emphasized that the traditional separation of these markets has created "regulatory no man’s land," which has stifled innovation and driven financial activity overseas. By aligning their regulatory frameworks, the SEC and CFTC aim to eliminate these gaps and position the U.S. as a global leader in digital finance. This collaboration includes the potential for expanded trading hours, regulatory clarity for event contracts, and the introduction of perpetual contracts in U.S. markets [2].

One of the core objectives of the initiative is to enable continuous trading for a broader range of asset classes, including equities and bonds. Currently, U.S. financial markets operate within limited hours, while markets like foreign exchange and cryptocurrency are already active 24/7. The agencies noted that while expanding trading hours could enhance U.S. competitiveness, the approach must be tailored to the characteristics of each asset class. The implementation of a 24/7 trading environment will require addressing operational feasibility and ensuring investor protections remain robust [3].

The proposal also includes plans to provide clear regulatory guidelines for event contracts—prediction market instruments that have seen significant growth globally. These contracts, which allow participants to speculate on future outcomes of events, are often based on securities and are currently limited in their availability to U.S. market participants. The agencies plan to examine ways to allow these instruments to be offered domestically without creating regulatory conflicts. This move is intended to bring U.S. markets in line with international practices and to capture economic activity that has been driven overseas due to regulatory fragmentation [1].

Perpetual contracts, a type of derivative without an expiration date that is commonly traded in offshore crypto markets, are also under consideration for onboarding to U.S. exchanges. These contracts are popular in the crypto space due to their flexibility and continuous trading features. However, their adoption in the U.S. has been limited by jurisdictional and definitional constraints. The SEC and CFTC propose that these contracts could be made available in the U.S. under a harmonized framework that ensures investor protections are met. This would allow U.S. traders access to products with transparent leverage limits and robust risk management, currently available only on offshore platforms [2].

In addition to extended trading hours and new product offerings, the agencies also emphasized the need for portfolio margining reforms. Currently, market participants are required to post separate collateral with different agencies even when their positions offset each other. A coordinated approach to portfolio margining could reduce capital inefficiencies by recognizing these offsetting positions, potentially freeing up significant amounts of capital and lowering barriers for institutional and retail participation in cross-market strategies [3].

The regulatory shift is supported by a broader policy framework outlined in the July 2025 White House report on digital asset markets. This report urged the SEC and CFTC to coordinate their oversight of the crypto sector and explore new pathways for innovation. The CFTC has already taken steps in this direction by introducing a new framework allowing offshore crypto exchanges to serve U.S. clients. The SEC has also launched initiatives to clarify crypto asset regulations, including proposals for quantum-resistant architecture to safeguard digital assets against future technological threats [1].

The joint regulatory effort represents a fundamental shift in the U.S. financial landscape, where the SEC and CFTC have historically operated with distinct mandates and occasionally conflicting approaches. The agencies now recognize that modern financial innovation requires coordinated regulation rather than fragmented oversight. The success of these proposals will depend on addressing complex operational challenges while maintaining the investor protections that have long defined U.S. markets [2].

Source:

[1] SEC and CFTC Push for 24/7 Capital Markets in Historic ... (https://bravenewcoin.com/insights/sec-and-cftc-push-for-24-7-capital-markets-in-historic-joint-statement)

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