The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have proposed a shift to round-the-clock trading for crypto derivatives to modernize U.S. financial markets. This move could enhance the U.S.'s competitiveness on the global stage.
24/7 Trading for Market Modernization
SEC and CFTC issued a joint statement proposing to change the operating hours of markets, which currently function under fixed hours established in 1985. The leaders from both commissions emphasize the need to adapt to the ever-changing global financial environment, where markets, such as cryptocurrency and foreign exchange, never close.
Competition in Digital Asset Space
The expansion to 24/7 trading would help maintain U.S. competitiveness in the growing digital asset market. Both regulators argue that an 'always-on' market is essential for the full realization of blockchain finance. However, this new format may also lead to increased market volatility.
FBOT Framework to Strengthen U.S. Leadership
The Foreign Board of Trade (FBOT) framework supports this regulatory approach, allowing offshore crypto exchanges to serve U.S. clients. This regulatory structure bolsters the U.S.'s position in the global digital asset market and backs the move to 24/7 trading, providing investors with increased flexibility.
By transitioning to a 24/7 trading framework, the U.S. has the potential to solidify its standing in the global financial landscape. This position could attract more international investors and establish the U.S. as a hub for digital finance.
