The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) recently announced a joint statement on September 5, 2025, outlining plans to modernize American financial markets. The agencies are considering implementing 24/7 trading cycles, regulating perpetual futures, and expanding oversight in crypto and derivatives markets.
Transition to Continuous Market Access
Traditionally, U.S. markets have operated on fixed weekday hours for over a century. The joint statement questions the relevance of this framework in today’s global economy, where assets like crypto, foreign exchange, and commodities trade continuously across different time zones. Extending trading hours could align U.S. markets with this new reality, although it comes with added risks such as exposure to global participants and the need for upgraded infrastructure.
Focus on Crypto Derivatives Regulation
The SEC and CFTC are actively reviewing perpetual futures contracts, which are prevalent on offshore crypto exchanges. Bringing these contracts under U.S. jurisdiction could enhance investor protections and risk management. The agencies also aim to provide regulatory clarity on event contracts, popular in prediction markets, to foster innovation while ensuring safeguards for investors.
Harmonization with Trump Administration’s Crypto Framework
The joint proposals align with the policy direction set by the Trump administration to create a unified digital economy framework. The SEC and CFTC are coordinating oversight of crypto markets, with the CFTC overseeing spot trading and the SEC handling tokenized securities. Recent updates like the expansion of the Foreign Board of Trade pathway demonstrate efforts to integrate crypto within existing regulatory structures.
Move Towards Unified Oversight
The current initiatives mark a new phase for both agencies as they recognize the convergence of securities and non-securities markets. Plans to expand trading hours, regulate derivatives, and provide exemptions for DeFi protocols aim to bridge the gap between U.S. and foreign markets. The concept of “super-apps” offering various trading options under one regulatory framework is also under consideration.
Risks and Criticisms
While the proposed reforms signal progress towards modernization, critics raise concerns about potential systemic risks and disadvantages for smaller investors. Policy analysts warn about volatility in overnight markets and challenges in ensuring orderly settlement across different time zones. Discussions at the upcoming roundtable on September 29 will further explore these issues.
Conclusion
The collaborative efforts between the SEC and CFTC reflect a significant step towards adapting U.S. finance to digital advancements. If implemented, the proposed changes could reshape market structures and bring offshore products under domestic oversight. However, overcoming legal, technical, and operational challenges will be crucial for successful implementation in a constantly evolving financial landscape.
As U.S. regulators strive to keep pace with a digital, always-on economy, the upcoming roundtable discussions will play a pivotal role in shaping the future of American financial markets.