Seeds of Wisdom RV and Economic Updates Saturday Morning 9-6-25

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US Regulators Push Forward 24/7 Markets, Crypto Oversight, and Cross-Border Enforcement

SEC and CFTC ramp up regulatory coordination under Trump’s digital economy agenda

A Shift Toward Always-On Markets
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued a joint statement exploring the possibility of 24/7 capital markets, signaling a profound shift in the structure of U.S. financial trading.

The regulators noted that scaling onchain finance and crypto derivatives requires a trading cycle that matches the global, always-on nature of digital assets. Key priorities include:

  • Crafting rules for event contracts and perpetual futures (futures without an expiry date).
  • Considering asset-class-specific approaches rather than a one-size-fits-all model.
  • Assessing the risks of increased overnight exposure for traders.

“Further expanding trading hours could better align U.S. markets with the evolving reality of a global, always-on economy,” the joint statement explained.

Trump Administration’s Digital Economy Blueprint
The initiative builds on President Donald Trump’s July crypto report, which called for interagency cooperation in regulating the sector. Under this framework:

  • The CFTC would oversee spot crypto markets.
  • The SEC would maintain jurisdiction over tokenized securities.
  • Offshore exchanges could apply to serve U.S. clients through the long-standing Foreign Board of Trade (FBOT) framework.

The report also highlighted the importance of developing quantum-resistant architecture to protect financial and military-grade cryptography from the threat of quantum computing. The SEC’s Crypto Assets Task Force is reviewing proposals to integrate such protections into digital assets.

Cross-Border Task Force Targets Global Fraud
Alongside the 24/7 market push, SEC Chair Paul Atkins announced the launch of the Cross-Border Task Force, designed to consolidate investigative efforts against fraud involving foreign-based companies.

The task force will prioritize enforcement against pump-and-dump and other manipulative schemes that exploit international borders to evade U.S. investor protections.

“We welcome companies from around the world seeking access to the U.S. capital markets. But we will not tolerate bad actors … that attempt to use international borders to frustrate and avoid U.S. investor protections,” Atkins said.

Toward Regulatory Harmonization
In a joint initiative, the SEC and CFTC also announced a September 29 roundtable on regulatory harmonization, aimed at aligning oversight of digital assets and trading platforms.

“By harmonizing our regulatory frameworks, leveraging exemptive authorities, and collaborating on innovative products and trading platforms, the two agencies could unlock new opportunities for market participants … and solidify the United States as the global leader in crypto and blockchain technology,” the agencies noted.

Why This Matters
The SEC and CFTC’s coordinated agenda points toward a future where U.S. financial markets operate 24/7, crypto trading enjoys clearer oversight, and cross-border enforcement strengthens investor protections. Taken together, these moves signal Washington’s intent to secure U.S. leadership in the digital economy while tightening the net around global bad actors.

@ Newshounds News™
Sources:  
CoinTelegraphCoinPedia

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Senate Crypto Bill Clarifies Tokenized Stocks Will Remain Securities

Lawmakers seek to preserve regulatory clarity as tokenization expands into traditional finance

A Key Provision on Tokenized Assets
The U.S. Senate has added a crucial clause to its crypto market structure bill confirming that tokenized stocks will remain classified as securities. The move preserves their compatibility with existing financial frameworks, including broker-dealer systems, clearinghouses, and trading platforms.

The clarification avoids confusion over whether tokenized equities could fall under commodities regulation. By keeping stocks under securities law, the Senate aims to ensure that blockchain-based financial instruments remain consistent with long-standing market rules.

“We want this on the president’s desk before the end of the year,” said Senator Cynthia Lummis of Wyoming, one of the bill’s lead sponsors.

Splitting Oversight Between SEC and CFTC
The legislation, dubbed the Responsible Financial Innovation Act of 2025, also defines the jurisdictional boundaries between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC):

  • The SEC will regulate digital assets that function as securities.
  • The CFTC will oversee commodities-related digital assets.

Lummis noted that the Senate Banking Committee is expected to vote this month on SEC-related provisions, followed by the Agriculture Committee’s review of CFTC oversight in October. A full Senate vote could occur as early as November.

Although the bill does not yet have broad Democratic support, bipartisan negotiations are ongoing. “There have been efforts to pair Democrats and Republicans on certain sub-issues within the bill,” Lummis explained.

Industry Push for Developer Protections
Crypto firms and advocacy groups are pressing lawmakers to add protections for developers and non-custodial service providers.

In August, a coalition of 112 companies and investors — including Coinbase, Kraken, Ripple, a16z, and Uniswap Labs — urged the Senate to ensure that outdated rules do not misclassify software developers as financial intermediaries.

Citing research from Electric Capital, the group warned that the U.S. share of open-source blockchain developers has already fallen from 25% in 2021 to 18% in 2025, highlighting the risks of regulatory uncertainty driving talent overseas.

Why This Matters
By reaffirming that tokenized stocks remain securities, lawmakers are reinforcing the bridge between blockchain innovation and traditional finance. At the same time, industry pressure underscores the need for balanced regulation that protects investors without stifling innovation or driving developers out of the U.S.

@ Newshounds News™
Source: 
CoinTelegraph

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