U.S. SEC begins prepping for around-the-clock trading that crypto treats as the norm
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
The U.S. Securities and Exchange Commission (SEC) hosted a roundtable discussing plans to expand securities market hours toward 24/7 trading, reflecting the continuous nature of crypto markets. SEC Chairman Paul Atkins highlighted tokenization's role in enabling real-time inventory management and increasing market efficiency. The SEC recently approved a tokenized securities trading exemption to promote growth while safeguarding against market abuses.
Why it matters
This initiative could transform traditional securities markets by allowing investors to react more quickly outside of standard trading hours, aligning the market's schedule more closely with crypto's nonstop activity. The SEC aims to balance growth-friendly measures with market protection, potentially reducing settlement failures and risky trading practices.
Key context
The SEC's discussion comes amid a shift in traditional firms considering extended trading hours, contrasting with crypto markets that operate continuously. Commissioner Hester Peirce noted challenges such as increased volatility and limited human oversight overnight, but the SEC is actively pursuing preparations for this transition.
Key numbers and entities
Key figures include SEC Chairman Paul Atkins and Commissioner Hester Peirce. The SEC has issued a new five-year exemption to promote tokenized securities trading.
What remains unclear
The source does not specify the detailed timeline or technological changes required for implementing 24/7 traditional market hours. It also lacks detailed guidance on how firms will manage overnight operational risks and regulatory oversight under the new framework.