SEC and CFTC Signal Major Shift Toward 24/7 Trading in Joint Market Statement

US financial regulators explore "always-on" capital markets to align with global crypto trading patterns, potentially reshaping traditional market structure while addressing new regulatory challenges.

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued a groundbreaking joint statement signaling their intent to explore 24/7 capital markets, marking a potential paradigm shift in how US financial markets operate and regulate digital assets.

Regulators Eye "Always-On" Market Structure

In their September 4, 2025 statement, the two agencies outlined their vision for continuous trading across asset classes, citing the need to scale onchain finance through round-the-clock market operations. The regulators emphasized that "scaling onchain finance requires a 24/7 trading environment across asset classes," directly acknowledging crypto's influence on traditional market evolution.

The statement represents a significant departure from traditional US market hours, which typically operate Monday through Friday with limited after-hours trading windows. By contrast, cryptocurrency markets have operated continuously since Bitcoin's inception, creating pressure on traditional financial infrastructure to adapt.

Targeted Focus on Crypto Derivatives

Beyond general market hours expansion, the agencies prioritized regulatory clarity for event contracts and perpetual futures — futures contracts without expiry dates that have become staples of crypto trading platforms. This focus suggests regulators are moving beyond simply allowing crypto trading to actively facilitating its integration with traditional financial markets.

However, the agencies acknowledged implementation challenges, stating: "Further expanding trading hours could better align US markets with the evolving reality of a global, always-on economy. Expanding trading hours may be more viable in some asset classes than others, so there may not be a one-size-fits-all approach for all products".

Risk-Reward Calculations for 24/7 Trading

The regulators explicitly recognized the double-edged nature of continuous trading. While 24/7 markets would increase capital velocity, they would also increase risk for traders by exposing overnight and long-term positions to market participants across different time zones.

This risk factor could prove particularly significant for traditional investors unaccustomed to the volatility and continuous price discovery that characterizes crypto markets. Traders could find their positions "knocked out" by market movements occurring while they sleep, fundamentally changing risk management strategies.

Trump Administration's Crypto Framework Takes Shape

The joint statement advances priorities established in the Trump administration's comprehensive crypto report published in July 2025. The report directed the SEC and CFTC to establish cooperative oversight over the crypto sector, with the CFTC gaining "clear authority" to regulate spot crypto markets while the SEC maintains purview over tokenized securities.

This division of regulatory responsibility addresses long-standing industry complaints about unclear jurisdiction between the agencies, potentially providing the regulatory clarity that crypto firms have sought for years.

International Access Expands Through FBOT Framework

In a related development, the CFTC announced in August 2025 a pathway for offshore crypto exchanges to serve US clients through the Foreign Board of Trade (FBOT) framework. This existing regulatory structure, operational since the 1990s, allows regulated offshore exchanges across all asset classes to apply for US business licenses.

The FBOT expansion represents a practical implementation of the agencies' evolving approach to international crypto market integration, potentially bringing major global crypto exchanges into US regulatory compliance.

Quantum Security Preparations Underway

The regulators' forward-looking approach extends beyond market structure to technological security. The Trump administration's July crypto report recommended developing quantum-resistant architecture to safeguard cryptographic protocols from future quantum computer attacks that could compromise current encryption standards.

The SEC's Crypto Assets Task Force is currently reviewing a proposal to quantum-proof digital assets before quantum devices potentially breach the encryption standards securing banking, finance, and military applications.

Market Structure Revolution in Motion

The joint statement signals the most significant potential change to US financial market structure in decades. Traditional markets operating on fixed schedules may struggle to compete with continuously operating crypto markets, particularly as institutional adoption accelerates.

The regulatory shift acknowledges crypto's maturation from a niche asset class to a force capable of reshaping global financial infrastructure. By proactively addressing 24/7 trading frameworks, US regulators appear positioned to maintain American market competitiveness in an increasingly digital global economy.

As implementation details emerge, the financial industry will be watching closely to understand how traditional market makers, clearing houses, and risk management systems adapt to continuous operation requirements that crypto markets have navigated since their inception.