In a move to modernize U.S. financial markets and enhance cryptocurrency regulation, the SEC and CFTC are jointly exploring the possibilities of 24/7 capital markets, perpetual futures contracts, and establishing clear regulatory frameworks for Decentralized Finance (DeFi).
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are actively considering the potential shift towards continuous, around-the-clock operation of capital markets.
According to a recently released joint statement, the two regulatory bodies are evaluating how embracing 24/7 trading could enhance the competitive standing of the United States in the global financial landscape.
Implications of 24/7 Capital Markets
Adopting a 24/7 capital market model could expedite the flow of capital. However, this transition would also introduce a new set of challenges and potential risks.
For instance, traders would be required to actively manage their market exposure at all hours, including during periods of lower U.S. trading activity when international market participants can significantly impact prices.
U.S. SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham have jointly proposed a “24/7 Markets” policy to bring securities trading online around the clock, aligning with crypto and global markets. They also suggested easing rules on prediction markets, perpetuals, and…
— Wu Blockchain (@WuBlockchain) September 6, 2025
Positions that appear secure during regular trading hours could become vulnerable due to international trading activities occurring while U.S. traders are offline.
The SEC and CFTC have acknowledged these concerns, noting that 24/7 trading may not be appropriate for all asset types. They suggest that tailored solutions may be necessary, with certain financial instruments being better suited for continuous trading than others.
Key Regulatory Priorities for Crypto Assets
The joint statement specifically highlighted crypto-related financial products. Creating well-defined rules for event contracts and perpetual futures is considered a critical priority. Perpetual futures, which lack a fixed expiration date, are prevalent on international trading platforms.
Currently, the regulatory status of perpetual futures within the U.S. legal framework remains ambiguous.
Establishing clarity in this area would enable regulators to encourage trading activity to migrate to U.S.-regulated exchanges, potentially enhancing investor protection and fostering a more robust domestic market.
Collaborative Crypto Oversight
The partnership between the SEC and CFTC represents an ongoing effort that began several years ago.
During the Trump administration, regulatory agencies were tasked with developing a cohesive framework for digital assets. The CFTC was granted explicit authority over spot crypto markets, while the SEC maintained oversight of securities markets.
The current initiative demonstrates a tangible instance of these two agencies working in unison to address emerging challenges.
Enhancing Safeguards and Investor Protection
For 24/7 capital markets to operate successfully, strengthening existing safeguards is essential. Regulators are currently focusing on several key areas.
First, Custodial Security requires exchanges to partner with qualified custodians to ensure the safety of customer assets. Second, Market Surveillance mandates that platforms implement robust monitoring systems to detect and prevent market manipulation and fraudulent activities. Finally, Transparent Pricing encourages exchanges to share data and ensure price consistency across different platforms, promoting fair market practices.
These measures are designed to maintain investor confidence while expanding the scope of regulated financial products.
Upcoming September Roundtable
The SEC and CFTC have scheduled a roundtable discussion for September 29th to further explore these issues. This session will address portfolio margining, which enables firms to offset risks across different asset classes.
The event will also address possible DeFi exemptions, with the goal of nurturing innovation within the U.S. market while upholding robust investor protections.
🚨JUST IN: The @SECGov and @CFTC are ramping up coordination to support crypto, DeFi, prediction markets, perpetual contracts & portfolio margining.
The two agencies are aiming to harmonize rules, reduce regulatory gaps, expand trading hours, and use innovation exemptions to… pic.twitter.com/T8utxyhbKe
— Eleanor Terrett (@EleanorTerrett) September 5, 2025
These discussions highlight the commitment of these regulatory bodies to ensure that U.S. markets remain competitive in the evolving landscape of modern finance. The outcomes of these meetings could significantly impact the U.S.’s position as a leader in global financial markets, potentially determining whether the country maintains its competitive edge or loses ground to international competitors.