SEC and CFTC Unite to Remake U.S. Crypto's Global Edge

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a joint roundtable to advance regulatory harmonization in the digital asset sector, marking a significant step toward aligning their respective frameworks. Scheduled for September 29, 2025, the event aims to address the challenges posed by fragmented oversight, which has previously driven innovation and economic activity overseas. In a joint statement, SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham emphasized the importance of reducing regulatory friction to foster a more coherent and competitive U.S. market [1].

The roundtable will focus on key priorities, including the expansion of trading hours across select asset classes. Regulators noted that markets such as foreign exchange, gold, and crypto already operate continuously, and extending trading windows could improve liquidity while maintaining investor protections. This move is intended to better align U.S. markets with the evolving reality of a global, always-on economy. However, the feasibility of extended trading hours may vary across different asset classes, indicating the need for a flexible approach [2].

Another central topic of discussion will be the development of frameworks for prediction markets and perpetual contracts. Prediction markets have seen rapid growth globally, and the agencies aim to provide clarity for innovators seeking to offer event-based contracts in the U.S. Perpetual contracts, which are common in offshore crypto markets but limited in the U.S. due to jurisdictional constraints, are also a focus. By creating a framework that allows these products to trade on regulated platforms, the agencies hope to attract onshore economic activity and provide U.S. traders access to products with transparent leverage limits and robust risk management [3].

The agencies also plan to review portfolio margining frameworks, which could allow firms to recognize offsetting positions across different asset classes. This would reduce capital inefficiencies and enable market participants to more effectively manage cross-market strategies. The CFTC and SEC emphasized that harmonized margin requirements could improve market resiliency, reduce the cost of carrying hedged positions, and lower barriers for both institutional and retail investors. Additionally, the proposal could catalyze liquidity and encourage innovation in market structure [4].

A key component of the regulatory collaboration involves the development of “innovation exemptions” for decentralized finance (DeFi) protocols. These exemptions would allow peer-to-peer trading of spot crypto assets, including derivatives, while preserving investor protections. The agencies reaffirmed their commitment to leveraging existing exemptive authorities to create safe harbors that support innovation. This approach would allow market participants to build commercially viable models while the agencies continue long-term rulemaking efforts [5].

The roundtable follows recommendations from the President’s Working Group on Digital Asset Markets, which called for a regulatory environment that supports innovation while maintaining investor protection. The SEC and CFTC emphasized that the U.S. has long been a hub for financial innovation but recently has seen novel products shift overseas due to legal uncertainty. By harmonizing their approaches, the agencies aim to reverse this trend and ensure the U.S. remains the premier location for financial innovation and capital markets [6].

The joint event underscores the agencies’ commitment to ensuring that U.S. markets remain competitive in the global digital economy. By addressing jurisdictional overlaps and structural inefficiencies, the SEC and CFTC aim to reduce unnecessary regulatory burdens and create a regulatory environment that fosters innovation and market integrity. As the roundtable approaches, stakeholders will be watching closely to see how these efforts translate into concrete policy changes and whether the U.S. can solidify its position as a global leader in crypto and blockchain technology [7].

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 and CFTC Issue Joint Statement on Regulatory ... (https://www.sec.gov/newsroom/press-releases/2025-112-sec-cftc-issue-joint-statement-regulatory-harmonization-efforts-will-co-host-roundtable-sept-29)

[3] SEC and CFTC aim to harmonize crypto rules, boost US ... (https://finance.yahoo.com/news/sec-cftc-aim-harmonize-crypto-211528843.html)

[4] Is The SEC and CFTC Working Toward Unified Crypto ... (https://www.onesafe.io/blog/harmonizing-crypto-regulations-impact-on-startups)