U.S. SEC begins prepping for around-the-clock trading that crypto treats as the norm

The U.S. Securities and Exchange Commission convened industry participants on Thursday to discuss expanding traditional securities trading beyond established weekday daytime hours and to examine how tokenization could play a role in that shift. The roundtable in Washington followed an SEC order released roughly an hour earlier that created an exemption pathway for firms to offer tokenized securities, giving them a five-year window under that framework.

SEC Chair Paul Atkins framed the move as a response to the reality that tradable events can occur outside of current market hours, saying expanded hours would let investors react more promptly to events. He highlighted tokenization's potential to enable real-time inventory management, improve settlement efficiency, reduce settlement failures and curb abusive practices such as naked short selling, and he directed staff to explore steps that balance growth with market protections.

Not all commissioners were unconcerned. Commissioner Hester Peirce observed that crypto markets operate continuously and cautioned that extending trading into overnight hours could produce wider bid-ask spreads, heightened price volatility and less time to resolve technology or surveillance issues. She also raised the prospect of overnight reputational or market-moving events—such as social media-driven price swings—occurring when corporate teams are less able to respond.

Despite those reservations, Atkins said preparations for longer trading hours are already underway or in place at the agency. The discussion, which drew securities lawyers and market participants, forms part of a broader SEC engagement with crypto-related developments; CoinDesk noted the agency's Crypto Task Force Chief Counsel Taylor Lindman will appear at its Policy and Regulation summit on Sept. 22 in Washington, D.C.