The U.S. Securities and Exchange Commission (SEC) is moving forward with proposals to allow stocks to trade in a way that more closely resembles bitcoin trading on digital asset exchanges.
SEC explores continuous settlement
Under the current system, U.S. equities are typically settled two days after a trade is executed.
The SEC’s new proposal would enable instant, or near-instant, settlement for stock trades, similar to the mechanisms already in place on major bitcoin exchanges.
This update aims to reduce counterparty risk and enhance market efficiency.
Mirroring bitcoin’s trading infrastructure
The proposed changes would allow traditional securities to be traded 24/7 with real-time settlement, mirroring the infrastructure used for bitcoin.
Digital asset platforms have long offered immediate settlement, and the SEC appears interested in applying these innovations to conventional equities.
Market impact and industry response
Industry observers believe this move could lower costs and modernize U.S. stock markets.
Proponents argue that adopting a model similar to bitcoin exchanges could attract a new generation of traders and improve liquidity across markets.
However, some traditional financial entities have expressed concerns about operational risks and readiness for such a transition.
Regulatory momentum builds
The SEC’s initiative reflects a broader trend of financial regulators examining ways to incorporate features pioneered by bitcoin markets into legacy financial systems.
The outcome of these proposals could reshape how Americans trade stocks and manage market risk.
