tl;dr
U.S. financial regulators, including SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham, are proposing significant changes to align traditional markets with the digital asset industry, including 24/7 trading, deregulation of derivatives, and relaxed rules for prediction markets and DeFi pro...
**Regulators Light the Fuse on a Crypto-Driven Financial Revolution**
The U.S. financial regulatory landscape is undergoing a seismic shift, with SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham unveiling a series of bold proposals aimed at aligning traditional markets with the relentless pace of the digital asset world. From 24/7 trading to deregulating derivatives, these moves could redefine how we buy, sell, and gamble with money—and they’re sparking a firestorm of debate.
**“24/7 Markets”: A Clock That Never Stops**
For over a century, Wall Street has operated on a rigid schedule: markets open at 9:30 a.m. and close at 4 p.m., Monday through Friday. But Atkins and Pham argue that this model is outdated, especially as crypto, gold, and global exchanges operate around the clock. Their “24/7 Markets” proposal seeks to extend trading hours for securities exchanges, mirroring the 24/7 nature of crypto markets.
“This isn’t just about convenience—it’s about survival,” said one industry insider. “If U.S. markets don’t adapt, they’ll be left behind in a global economy that never sleeps.”
Yet the proposal isn’t a one-size-fits-all solution. Regulators acknowledge that expanding hours may be more feasible for certain asset classes than others, hinting at a phased approach rather than a sweeping overhaul.
**Crypto Gets a Green Light—But at What Cost?**
The proposals don’t stop there. The agencies also floated easing rules for **prediction markets**, where investors bet on events like election outcomes or sports games, and allowing **perpetual derivatives contracts**—a staple of offshore crypto markets but currently restricted in the U.S.
Another eye-catching idea: **“innovation exemptions”** for DeFi protocols, which could let them list spot crypto and perpetual derivatives without the usual regulatory hurdles.
“This is a game-changer,” said a crypto executive. “It’s like giving the industry a free pass to innovate, but it’s also a gamble. If it goes wrong, the fallout could be massive.”
**The “Super-App” Dilemma**
At the heart of the proposals lies a vision of **“super-apps”**—companies that blend traditional finance with crypto, allowing users to trade stocks, crypto, leveraged futures, and even bet on events through a single platform. Atkins, a vocal proponent of this model, has argued that such apps could streamline financial services while reducing the need for multiple licenses.
But critics, like Better Markets’ Amanda Fischer, warn of the risks. “This is extremely dangerous,” she said. “It could create a Wild West where crypto-native firms outmaneuver traditional banks, and customers end up in a black hole of unregulated products.”
Fischer, who once worked under former SEC Chair Gary Gensler, also noted that implementing these reforms could take years, given their complexity.
**Trump’s Shadow Over the Reforms**
The proposals come amid a broader push by the Trump administration to loosen crypto restrictions, as outlined in a July report. This alignment with Trump’s agenda has drawn both praise and skepticism.
Crypto leaders are jubilant, seeing the reforms as a long-overdue recognition of the industry’s potential. “This is a massive win for crypto,” said one advocate. “It’s finally being treated as a legitimate part of the financial system.”
But traditional finance figures are wary. “We’re being asked to trust a system that’s still figuring out its own rules,” said a Wall Street analyst. “It’s like building a bridge while standing on a boat.”
**The Road Ahead**
With a joint roundtable discussion scheduled for September 29, the debate is far from over. Will these proposals usher in a new era of financial innovation—or create a regulatory quagmire?
As the clock ticks toward a 24/7 future, one thing is clear: the financial world is at a crossroads, and the choices made today could shape the economy for decades to come.
What do you think? Should regulators embrace this digital revolution, or is it a recipe for chaos?