The SEC and CFTC are looking into 24/7 capital markets, perpetual futures, and DeFi frameworks to modernise U.S. markets and strengthen crypto regulation.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are now looking into the possibility of transitioning to 24/7 capital markets.
According to a recent joint statement, the two agencies are considering how round-the-clock trading could make the US markets more competitive.
What 24/7 Capital Markets Could Mean
The move towards 24/7 capital markets would speed up capital flows. However, it would also introduce some new risks.
For example, traders would need to manage exposure around the clock, including during overnight hours when participants in other time zones can influence the markets.
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
Open trades that are safe during the day might face pressure from international activity while U.S. traders sleep.
The SEC and CFTC acknowledged this problem and noted that extended trading hours may not be suitable for every asset class. Instead, special approaches may be needed, with certain products being more suitable for continuous trading than others.
Regulatory Priorities for Crypto
The joint statement pointed out crypto-related instruments in particular. It noted that creating clear rules for event contracts and perpetual futures was a priority. Perpetual futures, which have no expiration date, are widely used on offshore platforms.
However, they lack defined treatment under U.S. law.
Providing clarity will help regulators to draw activity back onto U.S.-regulated exchanges. This could improve investor protections while creating an environment for domestic markets.
Coordinated Oversight of Crypto
The collaboration between the SEC and CFTC is part of a larger initiative that was set in motion years earlier.
Under the Trump administration, agencies were directed to develop a framework for digital assets. The CFTC was granted clear authority over spot crypto markets, while the SEC retained oversight of the securities market.
The current push shows the most visible example of these two regulators working together.
Safeguards and Investor Protection
However, for 24/7 capital markets to function effectively, more safeguards are required. The regulators stressed several factors they were considering.
The first is Custodial security, where Exchanges must partner with qualified custodians to protect customer accounts. The second is Market surveillance, where platforms are expected to implement strong monitoring to detect manipulation or fraud.
Finally, the last consideration is Transparent pricing, where exchanges are encouraged to share data across and make sure that prices are consistent.
All of these measures have been put in place to maintain investor trust, while expanding the scope of regulated products.
The Incoming September Roundtable
The SEC and CFTC have scheduled a roundtable on September 29 to look into the next steps. Discussions in this roundtable will cover portfolio margining, which allows firms to offset risk across asset classes.
The event will also look into DeFi exemptions to encourage innovation within the US, without sacrificing 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 agencies holding these discussions are showing that they are willing to push the U.S. markets to become competitive with modern finance. The outcome of the meeting could determine whether the country continues to be a leader in the world’s financial markets or loses ground to competitors overseas.
