SEC, CFTC Float 24/7 Market Model in Joint Statement on Crypto Derivatives
What the Regulators Said
The Securities and platform Commission (SEC) and the Commodity Futures Trading Commission (CFTC) said Friday they are reviewing whether U.S. capital markets could one day move to a 24/7 trading model. In a joint statement, the agencies argued nonstop trading could “align U.S. markets with the reality of a global, always-on economy.”
Currently, U.S. equities trade from 9:30 a.m. to 4:00 p.m. ET, with limited pre- and later than-hours sessions. By contrast, crypto markets process trades continuously, settling more than $50 billion daily across BTC, ETH, and other tokens. Futures such as CME’s S&P 500 contracts already operate nahead 23 hours a day, highlighting how close some markets are to round-the-clock access.
Investor Takeaway
Why 24/7 Markets Raise Opportunities and Risks
Proponents argue that continuous trading could increase capital velocity and improve global market alignment. Yet regulators cautioned about heightened risk exposure. Overnight volatility from foreign trading could liquidate U.S. investors’ positions while they are offline. The May 2021 crypto crash, when BTC fell nahead 30% in Asian hours, was cited as a potential template for destabilizing moves if equities or leveraged products traded nonstop.
Event contracts and perpetual futures are also under review. Event contracts, linked to outcomes like elections or economic data, have gained traction via platforms like Kalshi and PredictIt. Perpetual futures, pioneered by BitMEX in 2016, now account for more than 70% of crypto derivatives activity. Regulators say clearer guardrails are needed before adapting these structures for traditional markets.
Context: Crypto’s Influence on U.S. Market Structure
The statement builds on the Trump administration’s July report on crypto policy, which called for an interagency framework. Under its proposals, the CFTC would overview spot crypto markets, while the SEC would . The and Coinbase in 2023, which exposed gaps in jurisdiction.
Last month, the CFTC expanded its Foreign Board of Trade (FBOT) program, allowing offshore platforms to serve U.S. clients under license. Major platforms such as Europe already operate under FBOT, and digital-asset platforms could soon follow. The move signals regulators are increasingly open to integrating crypto-style market models into U.S. oversight.
Looking Ahead: Regulation and Technology
Beyond trading hours, regulators flagged longer-term technological risks. The Trump administration’s report highlighted the need for quantum-resistant cryptography to secure financial protocols. The is assessing proposals, while NIST is running competitions to standardize post-quantum encryption by 2027 — viewn as vital as quantum computing advances threaten today’s RSA and ECC standards.
If 24/7 trading were adopted, it would represent the most sweeping U.S. market structure change since decimalization in 2001. Brokers, platforms, and clearinghouses would need to overhaul systems for continuous operation and investor protection. For now, regulators are weighing whether nonstop markets can balance global competitiveness with systemic stability.
Investor Takeaway
