The U.S. Securities and Exchange Commission is advancing two initiatives that could reshape how traditional markets interact with blockchain technology and around-the-clock trading.
The agency said Tuesday it has finalized the agenda and lineup for a Sept. 17 roundtable focused on the possibility of 24-hour trading in U.S. markets. The event, scheduled to take place at the SEC’s Washington headquarters, will feature representatives from major market institutions, including NYSE, Nasdaq, State Street, Citadel Securities, Cboe and DTCC. Robinhood is also among the participants.
Unlike traditional securities markets, crypto markets already operate continuously. A shift toward 24-hour trading could therefore have significant consequences for crypto-focused broker-dealers and other firms that operate across both markets.
The SEC plans to examine several practical and regulatory challenges associated with continuous trading. Topics include overnight market monitoring, determining closing prices, clearing and settlement procedures, and maintaining the infrastructure required to keep markets running without interruption.
Blockchain Gets a Role in Transfer-Agent Rules
Separately, the SEC proposed a new rule Tuesday aimed at bringing transfer-agent regulations in line with blockchain and other technological advances.
Transfer agents maintain records showing who owns securities, but the emergence of onchain transactions has begun to challenge the traditional model. Blockchain networks can record ownership transfers publicly and almost instantly, a feature becoming increasingly relevant as tokenized securities expand.
The proposal would update a transfer-agent rule that has remained largely unchanged for decades. SEC Chairman Paul Atkins said the revised framework would recognize the use of electronic communications and blockchain technology in securities offerings and share transfers.
The proposed changes would permit blockchain networks to function as official transaction records while introducing additional requirements for transfer agents, including cybersecurity-related controls. The proposal is subject to a 60-day public comment period.
Commissioner Hester Peirce also raised a question with direct implications for digital-asset markets: whether transfer agents should continue collecting traditional identifiers such as names and physical addresses or be allowed to use alternatives including email addresses and digital wallet addresses.
The SEC’s proposal comes shortly after Bullish, the parent company of CoinDesk, announced its $4.2 billion acquisition of transfer agent Equiniti.
