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. 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
