Regulators Eye Global Crypto Alignment to Stem U.S. Exodus

The U.S. Commodity Futures Trading Commission (CFTC) is considering whether to recognize regulatory frameworks such as the European Union’s Markets in Crypto-Assets (MiCA) regulation, which could enable MiCA-authorized trading platforms to operate in U.S. markets. Acting CFTC Chairman Caroline D. Pham announced this during remarks delivered to the UK All-Party Parliamentary Group on Blockchain Technologies. The CFTC is evaluating whether trading platforms under MiCA or similar foreign regimes would qualify for access under its existing cross-border recognition rules.

Pham emphasized the need for a pragmatic approach to cross-border regulatory alignment, noting that many U.S. crypto firms have relocated to jurisdictions with clearer regulatory environments. These firms have, for example, established trading venues in Europe under MiFID or are preparing for MiCA compliance. Pham argued that U.S. regulators should leverage existing frameworks, including substituted compliance and mutual recognition, rather than starting from scratch. This approach, she said, would avoid market fragmentation and reduce the need for redundant regulatory requirements.

The CFTC’s review aligns with broader efforts by U.S. regulators to provide clarity in the crypto space. Earlier this month, the CFTC launched a “Crypto Sprint” initiative, seeking public feedback on spot crypto trading and other recommendations outlined in the Trump Administration’s digital asset roadmap. The roadmap, released in August 2025, includes proposals for modernizing banking rules, strengthening stablecoin oversight, and implementing regulatory tools such as safe harbors and sandboxes.

In addition to cross-border initiatives, the CFTC is working closely with the Securities and Exchange Commission (SEC) to harmonize regulatory approaches. Pham and SEC Chairman Paul S. Atkins jointly announced a roundtable on September 29 to discuss regulatory harmonization, including innovation exemptions and decentralized finance (DeFi). The collaboration reflects a broader shift toward coordination between the two agencies, with both expressing a commitment to avoiding regulatory moats and ensuring a level playing field for market participants.

Pham also highlighted the importance of technology-neutral regulations, warning against the pitfalls of overly prescriptive frameworks that may hinder innovation. She pointed to the lessons of the Dodd-Frank Act, which, she noted, led to unintended consequences such as market fragmentation. Instead, the CFTC aims to build a regulatory structure that is flexible and adaptive to evolving technologies while maintaining investor protection and market integrity.

The CFTC and SEC have jointly indicated that registered exchanges can already facilitate certain crypto asset trading within existing regulatory frameworks. This includes exchanges such as the New York Stock Exchange, Nasdaq, and CME, which are reportedly preparing to offer spot trading for major cryptocurrencies like Bitcoin and Ethereum. The regulators have encouraged platforms to reach out with questions and expressed a preference for working within existing laws rather than waiting for new legislation.