Unified Oversight Begins
The SEC and CFTC have launched a joint initiative to harmonize oversight of crypto markets, including plans for 24/7 trading, DeFi guidelines, and a dedicated anti-fraud task force. “By working in lockstep, our two agencies can harness our nation’s unique regulatory structure into a source of strength for market participants,” said SEC Chair Paul Atkins at the announcement. According to Barron’s, the framework will be introduced at a joint roundtable on September 29, 2025, and could form the backbone of America’s next wave of crypto regulation.
The initiative marks a dramatic shift from years of fragmented rulemaking and enforcement-first policies. For the first time, the U.S. is signaling it wants to design a long-term architecture for crypto markets rather than react to them.
Opening 24/7 Operations
At the center of the framework is the recognition that crypto is a round-the-clock global market. Regulators intend to adapt supervision, portfolio margining, and collateral rules for continuous operations. This could give U.S. institutions the confidence to expand offerings that align with crypto’s nonstop rhythm, from ETFs to derivatives products.
Analysts noted that the change could reduce volatility by smoothing liquidity gaps that currently exist when U.S. trading windows close. Exchanges such as Coinbase and Kraken are expected to welcome the move, which aligns regulated markets with the reality of digital asset trading.
DeFi & Prediction Market Clarity
Another central feature is clarity for decentralized finance. The SEC and CFTC will outline compliance pathways for automated lending protocols, staking platforms, and decentralized derivatives. Importantly, regulators are also exploring “innovation exemptions,” according to reporting from AMBCrypto. These would provide limited safe harbors for DeFi and peer-to-peer platforms to pilot new models without immediately falling under full securities or commodities law.
Prediction markets, often called event contracts, will also be reviewed. The agencies intend to clarify how these contracts can be offered legally without violating gambling or securities statutes—a breakthrough that could bring long-marginalized products into mainstream use.
Task Force Targets Fraud
The roadmap also calls for the creation of a Crypto Market Integrity Task Force. As reported by Barron’s, its mandate will include clamping down on pump-and-dump schemes, with special attention to operations involving foreign-listed companies. Regulators said that offshore actors have historically been responsible for much of the fraudulent volume in small-cap tokens and that coordinated enforcement will help close those loopholes.
For retail investors, this may mean fewer high-profile scams. For institutional players, it signals an environment where reputational and liquidity risks tied to manipulation could be significantly reduced.
Poised for Global Ripple Effects
The joint initiative comes against a backdrop of international regulatory competition. The EU has already implemented its MiCA framework, while Asia’s regulators in Singapore and Japan are tightening compliance standards. By proposing a unified system, the U.S. is attempting not just to catch up, but to set global standards.
Reuters has reported that U.S. enforcement actions in the past often spooked markets and drove innovation offshore. By contrast, this initiative seeks to anchor development domestically, balancing oversight with innovation. Legal experts say it could redefine America’s role in shaping digital finance globally.
Where It Goes Next
The framework will be debated at the September 29 roundtable, followed by a public comment period. Analysts expect initial rulemaking to begin in early 2026. Enforcement against scams, however, may start sooner under the new task force.
Global observers will be watching whether the U.S. can create a template that accommodates both innovation and systemic protection. For the first time, regulators are acknowledging that crypto markets will not conform to legacy schedules—and that oversight must be as dynamic as the technology itself.
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