Regulators Unite to Reclaim U.S. Lead in Global Crypto Innovation

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a joint roundtable on Sept. 29, 2025, as part of a broader initiative to harmonize their regulatory frameworks and enhance U.S. market competitiveness. The event follows a joint statement issued by SEC Chair Paul S. Atkins and CFTC Acting Chair Caroline D. Pham, emphasizing the need for collaboration in the rapidly evolving financial landscape. The roundtable will be held at the SEC’s Washington, D.C., headquarters and will be open to the public, with a live webcast and a later recording available on the SEC’s website [1].

The joint statement underscores the convergence of securities and non-securities markets and highlights the importance of regulatory coordination in supporting innovation. Atkins and Pham noted that the U.S. has long been a hub for financial innovation, but recent regulatory fragmentation has driven some novel products overseas. The agencies aim to reverse this trend by streamlining product definitions, aligning capital and margin frameworks, and creating coordinated innovation exemptions [1]. This effort is part of a broader strategy to align U.S. markets with global standards and ensure that American investors and businesses remain at the forefront of financial technology advancements.

Among the key areas of focus for the roundtable is the expansion of trading hours to better reflect the 24/7 nature of global financial markets, particularly for on-chain finance and crypto assets. Both agencies acknowledged the need to assess operational feasibility, liquidity, and investor protections when considering extended trading hours [1]. The discussion will also explore the potential for harmonized regulations around event contracts and perpetual contracts, which are common in offshore crypto markets but limited in the U.S. due to jurisdictional constraints [1]. By addressing these gaps, the SEC and CFTC aim to provide greater clarity for innovators and market participants.

Portfolio margining is another area where harmonization could yield significant benefits. Currently, market participants are required to post separate collateral for positions held at SEC-registered and CFTC-registered entities, even when those positions hedge each other. A coordinated framework could reduce capital inefficiencies and free up balance sheet capacity, encouraging broader participation in cross-market strategies [1]. This approach would not only lower the cost of capital but also promote liquidity and tighter spreads, aligning U.S. markets more closely with international benchmarks.

In the realm of decentralized finance (DeFi), the agencies reaffirmed their commitment to exploring "innovation exemptions" that would allow peer-to-peer trading on DeFi protocols, including spot and derivative products such as perpetual contracts. These exemptions would provide safe harbors for market participants while the agencies work toward long-term rulemaking. Atkins emphasized that the right to self-custody is a core American value and that the regulatory approach should not impede this principle [2]. The agencies also expressed openness to engaging with entrepreneurs to foster onshore trading activity and innovation [1].

The joint roundtable reflects a strategic shift in the regulatory approach of the SEC and CFTC, moving away from past turf wars and toward a more collaborative and forward-looking posture. Atkins and Pham highlighted the importance of leveraging existing exemptive authorities and statutory mandates to create a regulatory environment that supports both innovation and investor protection. The agencies’ unified message signals a commitment to ensuring that the U.S. remains a global leader in capital markets and financial technology [2].

Source:

[1] Joint Statement from the Chairman of the SEC and Acting ... (https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525)

[2] SEC, CFTC Chiefs Say Crypto Turf Wars Over as Agencies ... (https://www.coindesk.com/policy/2025/09/05/sec-cftc-chiefs-say-crypto-turf-wars-over-as-agencies-move-ahead-on-joint-work)