SEC Explores 24‑Hour Trading as Crypto Markets Operate Around the Clock

The U.S. Securities and Exchange Commission convened a roundtable at its Washington headquarters to examine the prospect of expanding traditional securities markets into continuous, overnight trading. The meeting took place shortly after the agency issued an order approving a new exemption that allows firms to trade tokenized securities for a five‑year period.

24‑Hour Trading Discussion

SEC Commissioner Paul Atkins highlighted that extending market hours would enable investors to react more quickly to events, noting that “tradeable events aren’t constrained to market hours.” He said the agency is already preparing for the operational changes required to support a “new day — and night” trading environment.

Tokenized Securities Exemption

At the same session, the SEC announced an exemption that permits firms to launch tokenized securities venues without the full burden of existing securities regulations for five years. Atkins described tokenization as a tool that could improve real‑time inventory management, reduce settlement failures, and mitigate abusive naked short selling.

Concerns About Extended Hours

Commissioner Hester Peirce raised potential risks of around‑the‑clock trading, including wider spreads, increased price volatility, limited human oversight during off‑hours, and the challenge of monitoring overnight market activity such as social‑media‑driven price swings.

Next Steps

Despite the identified challenges, the SEC indicated that several preparatory measures are already underway to support a growth‑friendly yet protected market environment.