Why Nasdaq Is Considering 23-Hour Trading Amid Crypto Investor Demand

Nasdaq is actively exploring the possibility of extending its equity trading hours to 23 hours a day, a significant departure from the current 6.5-hour standard U.S. equity market session. This initiative is primarily driven by demand from crypto investors and firms like Coinbase, whose 24/7 trading model has influenced expectations around market accessibility. The move reflects broader shifts in investor behavior and raises important questions about liquidity, volatility, and regulatory oversight in traditional equity markets.

What happened

Nasdaq, the U.S. stock exchange home to major crypto-related companies such as Coinbase, is considering extending its trading hours to nearly continuous operation—23 hours daily, according to a December 2025 report by Coindesk. This comes amid growing demand from crypto investors and firms accustomed to 24/7 markets, who seek more flexible access to equity trading outside the traditional 9:30 AM to 4:00 PM Eastern Time window.

Nasdaq’s CEO, Adena Friedman, has publicly acknowledged this shift, noting in the company’s Q3 2025 earnings call that evolving investor behaviors, particularly among younger and crypto-native participants, are pushing exchanges to rethink established trading hours. Nasdaq’s current trading model aligns with the broader U.S. equity market, which operates roughly 6.5 hours per day, supplemented by limited pre- and post-market sessions.

Crypto markets, by contrast, operate continuously every day, creating expectations for uninterrupted liquidity and trading accessibility. Analysts have interpreted Nasdaq’s initiative as a response to these behavioral changes. Some market commentators suggest that extending trading hours could enhance liquidity by accommodating global time zones and smoothing volatility spikes typically seen at market open and close. However, other experts caution that extended hours often experience lower liquidity and higher volatility due to thinner order books and reduced institutional participation.

Regulatory considerations also come into focus. The SEC Chair, Gary Gensler, has noted at the 2025 Annual Market Structure Conference that longer trading hours would expand the window requiring surveillance and market integrity oversight, potentially necessitating new regulatory frameworks. As of now, no official Nasdaq filings or SEC rule changes detailing the implementation or regulatory approval process for 23-hour trading have been made public.

Why this matters

Nasdaq’s exploration of near-continuous trading signals a potential structural shift in U.S. equity markets driven by the evolving demands of a new generation of investors influenced by crypto market norms. Extending trading hours could fundamentally alter the liquidity profile and volatility dynamics of U.S. equities.

Currently, most liquidity and price discovery occur during the regular market session, with extended hours trading typically associated with lower volumes and more volatile price movements. Moving to a 23-hour trading day could redistribute liquidity across a broader time frame and potentially reduce abrupt volatility around market open and close. This might offer more flexibility for global investors and crypto-native participants who expect continuous market access.

However, the change also raises challenges. Lower liquidity during off-peak hours could lead to greater price swings, potentially undermining the quality of price discovery. Institutional investors, who provide significant liquidity during regular hours, may be less active during extended periods, increasing risks of market instability. Additionally, regulatory oversight would need to adapt to monitor a substantially longer trading day, complicating enforcement and surveillance efforts.

The move also reflects a broader tension between traditional financial market structures and the disruptive influence of crypto markets. Nasdaq’s willingness to consider 23-hour trading can be seen as an attempt to remain relevant and competitive in an environment where investor expectations are shifting towards greater accessibility and immediacy.

What remains unclear

Despite confirmation of Nasdaq’s consideration of 23-hour trading, several critical details remain unspecified in public sources. It is unknown how Nasdaq plans to implement this change operationally—whether through a phased rollout or a single transition. There is no public information on which securities would be eligible for extended hours trading; it is unclear if all Nasdaq-listed stocks would be available or if limitations would apply.

The regulatory pathway also remains opaque. No filings or formal proposals from Nasdaq or the SEC have been released outlining necessary rule changes or approvals. The stance of regulatory bodies such as the SEC and FINRA on near-24/7 equity trading has not been officially communicated, leaving oversight frameworks uncertain.

Furthermore, data on how different market participants—retail versus institutional investors—might respond to extended hours is lacking. There is no empirical evidence or backtesting results available to assess the potential impact on liquidity, volatility, or price discovery quality at this scale of extended trading. The potential effects on non-crypto-related market participants, including pension funds and mutual funds, have not been explored.

Finally, Nasdaq’s plans to manage potential increased volatility and ensure market stability during extended hours have not been disclosed.

What to watch next

Nasdaq’s announcement of a formal implementation plan detailing the rollout of 23-hour trading, including timelines and scope.
Public filings or rule change proposals submitted to the SEC and FINRA outlining the regulatory framework and required approvals for extended trading hours.
Statements or guidance from U.S. regulatory bodies (SEC, FINRA) clarifying their position and supervisory approach to near-continuous equity trading.
Data releases or pilot programs evaluating liquidity, volatility, and market quality during extended trading hours, if Nasdaq initiates testing phases.
Market participant feedback, particularly from institutional investors and retail traders, on the impact and usability of extended trading sessions.

Nasdaq’s consideration of 23-hour trading reflects a significant evolution influenced by crypto market practices and changing investor expectations. While the move has the potential to reshape U.S. equity market structure, key operational, regulatory, and market impact details remain unresolved. How Nasdaq and regulators address these uncertainties will determine whether extended hours trading can enhance market accessibility without compromising liquidity and stability.

Source: https://www.coindesk.com/business/2025/12/15/nasdaq-home-of-coinbase-strategy-stocks-looking-for-23-hour-daily-trading. This article is based on verified research material available at the time of writing. Where information is limited or unavailable, this is stated explicitly.