Regulators Plot New Playbook to Win the Global Crypto Race

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are working collaboratively to explore regulatory frameworks that could bring perpetual contracts—derivatives without a fixed expiry date—onto U.S. trading platforms. This initiative is part of broader efforts to harmonize oversight and align with the global trends in digital financial innovation. The agencies have highlighted the need to address existing regulatory uncertainties that have driven such financial products to offshore markets, where they are already widely traded, particularly in crypto markets. Perpetual contracts, if brought onshore, could provide U.S. market participants access to products with standardized leverage limits and transparent risk management structures [1].

The collaboration between the SEC and CFTC follows a joint statement by SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham, emphasizing that the convergence of securities and non-securities markets demands a unified and agile approach to regulation. The agencies aim to develop a "reliable playbook" for innovators and investors by aligning product definitions, streamlining reporting standards, and harmonizing capital and margin frameworks. They also seek to leverage existing exemptive authorities to facilitate the development of new products, including through “innovation exemptions” for decentralized finance (DeFi) protocols [2].

A key step in this initiative is the announcement of a joint roundtable on regulatory harmonization, scheduled for September 29, 2025. This event will focus on addressing jurisdictional and definitional challenges that have historically hindered the domestic adoption of innovative financial products. The roundtable is expected to explore ways to provide clarity on event contracts, expand trading hours for certain asset classes, and refine portfolio margining rules to reduce capital inefficiencies. These measures are intended to align U.S. markets with the realities of a 24/7 global economy and support the scaling of on-chain finance [3].

The regulators have also expressed openness to creating safe harbors that would allow market participants to engage in peer-to-peer trading of spot crypto assets and derivatives over DeFi protocols. This approach aligns with the agencies’ commitment to investor protection while fostering innovation. Market participants are encouraged to engage directly with SEC and CFTC staff through filings, registrations, or requests for relief, providing an opportunity for real-world testing of new products under a flexible regulatory environment [4].

The initiative builds on prior efforts such as the SEC’s Project Crypto and the CFTC’s Crypto Sprint, both aimed at clarifying the regulatory landscape for digital assets. The collaboration marks a shift in tone from enforcement-focused actions to a more pro-innovation stance, with the goal of ensuring U.S. leadership in the global crypto and blockchain technology sector. The agencies have emphasized the importance of using existing statutory authorities to create a regulatory environment that supports competitiveness, market integrity, and investor confidence [5].

Source: [1] Joint Statement from the Chairman of the SEC and Acting Chairman of the CFTC (https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525?utm_medium=email&utm_source=govdelivery) [2] Joint Statement from the Chairman of the SEC and Acting Chairman of the CFTC (https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525?utm_medium=email&utm_source=govdelivery) [3] SEC and CFTC explore ways to bring perpetual contracts onshore (https://cryptobriefing.com/perpetual-contracts-regulation-sec-cftc/) [4] SEC and CFTC explore ways to bring perpetual contracts onshore (https://cryptobriefing.com/perpetual-contracts-regulation-sec-cftc/) [5] SEC and CFTC to coordinate crypto efforts (https://blockworks.co/news/sec-cftc-crypto-coordination)