SEC Explores Around-the-Clock Trading as Tokenization Efforts Advance

The U.S. Securities and Exchange Commission held a roundtable discussion in Washington on expanding traditional securities trading into a 24-hour, everyday schedule similar to how cryptocurrency markets already operate. The event took place shortly after the agency approved a separate order allowing tokenized securities trading, signaling a broader push to modernize U.S. market infrastructure.

Chairman Highlights Benefits of Extended Trading Hours

SEC Chairman Paul Atkins told attendees that market-moving events aren’t limited to standard trading hours, and expanding access would allow investors to respond more quickly to developments. He also connected the discussion to tokenization, noting that representing securities on blockchain networks could help the industry achieve real-time inventory tracking, reduce settlement failures, and potentially eliminate abusive short-selling practices altogether.

Commissioners Acknowledge Practical Challenges

Not everyone is convinced the transition will be simple. Commissioner Hester Peirce pointed out that while crypto markets operate continuously, extending trading hours for traditional firms raises real concerns, including wider bid-ask spreads, increased price volatility, limited staff availability to address technical issues, and reduced oversight during overnight hours. She also noted risks like unexpected social media activity affecting stock prices while company offices are closed.

Preparations Already Underway

Despite these challenges, Atkins indicated that the agency is moving forward, stating that several necessary preparations for expanded trading hours are already in progress or already in place. The discussion reflects a broader effort by regulators to modernize traditional securities markets in response to the always-on nature of digital asset trading.