SEC and CFTC Float 24/7 Markets, Perpetuals and DeFi Rules That Could Affect Bitcoin Trading

• Proposal: 24/7 Markets for some asset classes to match always-on crypto trading.

• Regulators propose easier listing for event/prediction contracts and broader access to perpetual derivatives.

• Roundtable planned for September 29; reforms could take years and may create “super-app” trading platforms.

24/7 markets proposal front-loads change for U.S. trading hours; read how it affects crypto, derivatives, and DeFi. Stay informed with COINOTAG.

What are 24/7 markets?

24/7 markets are trading venues that would operate continuously, expanding hours beyond current weekday schedules to match global and crypto market activity. The SEC and CFTC chairs argue such markets could better align U.S. trading with an “always-on” economy while noting the approach may vary by asset class.

How would allowing perpetual derivatives and prediction markets affect U.S. trading?

Permitting perpetual derivatives and easing listing for prediction markets would bring products common in offshore crypto markets into U.S. venues. Regulators propose innovation exemptions for DeFi protocols and broader cross-listing rules to allow both spot crypto and perpetuals to trade on securities and commodities exchanges.

The chairs framed these changes as part of a broader plan to reduce regulatory fragmentation and enable “super-apps” that offer integrated services like trading, staking and lending under a unified platform. They stressed a one-size-fits-all approach is unlikely and that phased implementation will be considered.

Why do regulators propose this change now?

Regulators say continuous trading better reflects the reality of global, always-on markets, including crypto, gold and FX. The proposals follow a July report from the administration recommending looser restrictions on crypto trading. Officials cite the need to modernize rules as market structures converge.

Frequently Asked Questions

How soon could 24/7 markets be implemented?

Implementation would likely take years because the proposals require detailed rulemaking, infrastructure upgrades and coordination between the SEC and CFTC. A joint roundtable on September 29 will begin public discussion, but final rules depend on regulatory processes and stakeholder input.

Do experts warn about risks from these proposals?

Yes. Amanda Fischer, policy director at consumer advocacy group Better Markets, cautioned that integrated platforms offering securities, spot crypto, leveraged futures and event contracts could concentrate risk and favor crypto-native firms over traditional finance firms.

What protections are proposed for retail investors?

Regulators signaled they plan to evaluate asset-specific viability and risk controls. Proposals include oversight expectations for listing standards, margin rules for derivatives, and potential guardrails for prediction and event contracts to protect investors.

Key Takeaways

• Market hours reform: Regulators propose testing continuous trading for select asset classes to match crypto market cadence.
• Product expansion: Proposals would ease access to perpetuals, prediction markets, and innovation exemptions for DeFi.
• Long timeline: Public roundtable scheduled for September 29; formal rule changes could take years and require cross-agency coordination.

Conclusion

The joint proposals from SEC chair Paul Atkins and CFTC acting chair Caroline Pham signal a significant pivot toward aligning U.S. market structure with the always-on nature of crypto and global trading. These measures — including 24/7 markets, eased perpetuals and prediction market rules, and DeFi innovation exemptions — aim to modernize trading but will require careful rulemaking and safeguards. COINOTAG will continue covering developments as regulators move from proposal to implementation.

Published: 2025-08-25 | Updated: 2025-08-25 | Author: COINOTAG