On Friday, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) unveiled a new joint initiative aimed at fostering a more robust regulatory environment for the crypto market.
Central to this initiative is a bold proposal to enable traditional financial markets to operate around the clock, a move designed to align with the digital asset landscape.
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.
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
