SEC and CFTC Unveil Game-Changing Pro-Crypto Framework: Will Traditional Markets Finally Go 24/7?
Wall Street's sleeping giants just got a crypto wake-up call.
The Regulatory Revolution
SEC and CFTC dropped a coordinated framework that could force traditional markets to compete with crypto's non-stop trading cycle. No more waiting for the opening bell—this proposal effectively dismantles the 9-to-5 trading paradigm that's governed finance since... well, forever.
24/7 Market Reality
Traders could soon execute positions during midnight epiphanies or Sunday morning volatility spikes. The agencies acknowledge what crypto natives known for years: global markets don't sleep—and neither should liquidity.
The Compliance Shift
Brokerages and exchanges now face infrastructure upgrades that'll make Y2K preparations look trivial. Settlement systems, risk protocols, and—god help them—legacy banking integrations all require overhauling.
Because nothing motivates regulators like realizing their precious closing bells are becoming irrelevant relics in a digital asset world that never hits pause. Even Wall Street might finally learn what 'moon' means beyond their Hamptons vacation plans.
Collaborative Approach To Crypto Regulation
In their announcement, the SEC and CFTC emphasized that the crypto market necessitates a collaborative approach, particularly in the wake of their previous joint statement addressing the trading of certain spot crypto asset products.
Among the key proposals discussed is the possibility of extending trading hours for various asset classes. The SEC and CFTC acknowledged that certain markets, such as foreign crypto exchanges and commodities, already function continuously.
Another significant topic that was addressed was the growth of prediction markets and the increasing demand for event contracts. Crypto platforms like Kalshi and Polymarket have fueled the growth of these markets worldwide and the agencies aim to provide the guidance they need to responsibly list such contracts in the US.
Bitcoinist recently reported that, after facing significant restrictions in 2022, Polymarket has been granted permission to resume providing its services to American clients after a three-year absence.
Joint Roundtable Scheduled
The discussion also touched on the potential for onshoring perpetual contracts, which are commonly used in offshore crypto markets. By working together, the SEC and CFTC hope to establish a framework that allows these contracts to be traded within regulated environments.
The agencies also reaffirmed their willingness to explore “innovation exemptions” that WOULD facilitate peer-to-peer trading in decentralized finance (DeFi) protocols.
The regulators assert that such exemptions could foster a safer environment for market participants while allowing them to engage in innovative trading models without excessive regulatory burdens.
As part of their commitment to “regulatory harmonization,” the SEC and CFTC announced a joint roundtable scheduled for September 29, 2025.
Featured image from DALL-E, chart from TradingView.com
