SEC and CFTC Push for 24/7 Capital Markets in Historic Joint Statement

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) released a groundbreaking joint statement on September 5, 2025, outlining plans to create 24/7 capital markets. This marks the first time both agencies have worked together to expand trading hours across all asset classes.

“For on-chain finance to scale, the SEC and the CFTC should collaborate to consider the possibility of further expanding trading hours,” the agencies stated. They noted that factors like operational feasibility and investor protection would guide any changes.

The announcement represents unprecedented cooperation between two agencies that have often worked separately. SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham emphasized that their agencies’ work has “never been more intertwined.”

The regulators plan to harmonize their rules across several areas. These include product definitions, reporting standards, capital requirements, and margin frameworks. Currently, companies often must follow different rules for similar products depending on which agency oversees them.

“By working in lockstep, our two agencies can harness our nation’s unique regulatory structure into a source of strength for market participants, investors, and all Americans,” the statement reads.

This coordination aims to eliminate what regulators call “regulatory no man’s land” – situations where unclear oversight has prevented innovation. The agencies blame this uncertainty for driving financial innovation overseas.

The joint statement outlines four priority areas for immediate action:

Source: @SECGov

24/7 Trading Hours: The agencies want to expand trading beyond current market hours. They noted that foreign exchange, gold, and crypto assets already trade continuously. Other asset classes may follow, though the approach will vary by product type.

Event Contracts: These prediction market instruments have grown rapidly worldwide. The agencies plan to provide clear rules for companies wanting to offer event contracts, including those based on securities.

Perpetual Contracts: These derivatives have no expiration date and are popular on offshore crypto exchanges. The agencies want to bring these products to U.S. platforms with proper investor protections.

Portfolio Margining: Currently, traders must post separate collateral with different agencies even when their positions offset each other. New rules would allow more efficient margin requirements across product types.

The proposed changes could deliver several advantages to traders and institutions. Enhanced portfolio margining alone could free up significant capital currently locked in separate accounts.

“By reducing capital lock-up while maintaining robust risk controls, the agencies could catalyze liquidity, tighten spreads, and encourage innovation in market structure,” the statement explains.

Extended trading hours would help U.S. markets compete globally. Many financial products already trade overseas during U.S. market closures. Domestic exchanges have started expanding hours to capture this activity.

The changes could also increase what regulators call “capital velocity” – how quickly money moves through the financial system. This typically improves market efficiency and price discovery.

Cryptocurrency markets have pushed traditional finance toward 24/7 operations. Unlike stocks or bonds, crypto assets trade continuously on multiple platforms worldwide.

The agencies acknowledged this reality in their statement. They noted that scaling blockchain-based finance requires round-the-clock trading environments.

Recent regulatory developments have supported this trend. In August, the CFTC announced new pathways for offshore crypto exchanges to serve U.S. clients. The SEC has also launched initiatives to clarify crypto asset rules.

The joint statement builds on President Trump’s directive to make America “the crypto capital of the world.” A July White House report recommended that both agencies coordinate their crypto oversight efforts.

The agencies will hold a joint roundtable on regulatory harmonization on September 29, 2025. This meeting will bring together industry participants and regulators to discuss specific implementation steps.

Market participants can already engage with both agencies about trading certain crypto assets on registered exchanges. A separate staff statement released September 2 clarified that current rules don’t prohibit such trading.

The CFTC has already begun collecting public comments on 24/7 trading. Their request for comments seeks input on risks, benefits, and operational considerations for round-the-clock derivatives markets.

This regulatory cooperation represents a fundamental shift in U.S. financial market oversight. For decades, the SEC and CFTC have operated with separate mandates and occasionally conflicting approaches.

The joint statement suggests this era is ending. Both agencies now recognize that modern financial innovation requires coordinated regulation rather than fragmented oversight.

Market participants will watch closely as these proposals develop. The success of 24/7 markets will depend on solving complex operational challenges while maintaining investor protections that have made U.S. markets trusted worldwide.