SEC Prepares for 24-Hour Securities Trading
On September 1, the SEC published the agenda for a 24-hour trading roundtable scheduled for September 17 in Washington, D.C.
The event will bring together representatives from Nasdaq, Cboe, DTCC, State Street, Citadel Securities, Jane Street, Interactive Brokers and Charles Schwab, alongside platforms already developing near-continuous trading models, including 24X and Blue Ocean.
Discussions will cover overnight market surveillance, closing-price procedures, clearing and settlement, liquidity, investor protection, cybersecurity and the operational resilience required to keep trading systems running with shorter maintenance windows.
The initiative is particularly relevant to the crypto sector, where trading already operates continuously. If U.S. securities markets move toward a similar model, brokers and digital-asset platforms offering both stocks and cryptocurrencies may need to adapt their surveillance, staffing and settlement systems.
A similar shift is emerging in Europe. London Stock Exchange Group has partnered with Payward, the parent company of Kraken, to develop infrastructure for tokenized UK equities through its planned LSE 24 venue. The launch is targeted for 2027, subject to regulatory approval.
Blockchain Moves Deeper Into Securities Infrastructure
Also on September 1, the SEC proposed modernizing the rules governing registered transfer agents, which maintain securityholder records and record changes in ownership.
The rules have not been substantially updated since the late 1970s and early 1980s. The proposal is intended to reflect the widespread use of electronic records and communications, including blockchain technology in securities offerings and share transfers.
The proposal does not automatically authorize every blockchain-based ownership system. Instead, it would update the regulatory framework so transfer agents can use newer technology while remaining responsible for accurate records and the safe operation of the U.S. clearance and settlement system.
The public comment period will remain open for 60 days after the proposal is published in the Federal Register.
Blockchain-based recordkeeping is already being introduced within regulated investment products. FORECK.INFO previously examined the SEC’s treatment of Franklin Templeton’s BENJI fund and BlackRock’s new tokenized funds.
Crypto Industry Seeks a Flexible ETF Framework
At the same time, the SEC is reviewing how so-called “Novel ETFs” should be regulated. The category may include funds linked to crypto assets, blockchain-based opportunities, private assets, event contracts, leveraged strategies and other non-traditional investments.
Organizations including the Crypto Council for Innovation, a16z, Grayscale, Solana Policy Institute, Charles Schwab, Jane Street and Franklin Templeton submitted responses to the regulator.
Several respondents argued that the SEC should not treat all new ETFs as a single category. A fund holding a liquid crypto asset with established pricing and surveillance may present different risks from a product investing in private assets, event contracts or complex strategies.
The Crypto Council for Innovation asked the SEC to consider extending some of the regulatory efficiencies available to traditional ETFs to other exchange-traded products. It also recommended preserving the existing legal definition of an investment company. A16z similarly urged the regulator to distinguish products by their underlying assets and risks instead of applying one framework to every novel structure.
The debate is more divided over prediction-market products. Kalshi argued that registered funds should be allowed to hold regulated event contracts under existing investment-company protections and tailored disclosure rules. Public Citizen opposed the idea, warning that retail investors could confuse event-contract funds with conventional long-term ETFs.
None of the three SEC initiatives represents a completed transition. However, together they show that the regulator is preparing for longer trading hours, blockchain-based securities infrastructure and a broader range of digital-asset investment products.
