Bitcoin News Today: CFTC Launches Third Crypto Sprint to Strengthen Market Rules and Consumer Protection

The Commodity Futures Trading Commission (CFTC) has initiated the third phase of its “Crypto Sprint,” a fast-tracked regulatory initiative aimed at implementing recommendations from the President’s Working Group on Digital Asset Markets. Acting Chair Caroline Pham announced the expansion on August 20, 2025, highlighting the agency’s focus on custody, leveraged retail trading, and consumer protections in digital asset markets. This phase is part of a four-part rulemaking process launched in early August, with the first two sprints establishing foundational frameworks for spot trading and broader market structures [1].

The CFTC is seeking public input by October 20, 2025, as part of its effort to develop a unified federal approach to crypto regulation. The feedback will inform a forthcoming phase that is expected to result in formal rules and supervisory guidance. The initiative also includes a specific focus on leveraged spot crypto contracts, governed under Section 2(c)(2)(D) of the Commodity Exchange Act [3]. The agency is emphasizing the importance of transparency, consumer protection, and systemic risk mitigation as it works to create a more structured and accessible digital asset market [2].

Industry observers have noted that the CFTC’s approach reflects a shift from enforcement to enablement, positioning the U.S. as a potential leader in setting global standards for digital assets. Andrew Rossow, CEO of AR Media Consulting, described the efforts as a strategy to establish “federal legitimacy” in an area long plagued by regulatory uncertainty. By addressing state-by-state fragmentation, the CFTC aims to lay a regulatory foundation that supports innovation while restoring investor confidence [1].

The timing of the initiative has coincided with internal challenges at the CFTC, including staff reductions and organizational restructuring. Despite these hurdles, Acting Chair Pham has underscored the urgency of modernizing crypto regulations to keep pace with the rapidly evolving market. The agency’s multi-phase sprint model allows for iterative feedback and policy refinement before moving toward formal rulemaking, ensuring that the final framework is both responsive and robust [5].

Remaining sprints are expected to address unresolved issues such as decentralized finance (DeFi) oversight, banking access, tax clarity, and inter-agency coordination. The CFTC’s broader goal is to align U.S. standards with global benchmarks, reinforcing the country’s influence in the digital asset ecosystem [7].

The CFTC’s latest move signals a strategic effort to create a stable and transparent environment for digital asset trading, with potential implications for global market participants. As the agency moves forward, it will rely on stakeholder engagement to shape a regulatory framework that balances innovation with oversight [4].

Sources:

[1] Decrypt, “CFTC Opens Next Phase of Crypto Sprint, Seeks Public Input on Broader Rules” https://decrypt.co/336357/cftc-opens-next-phase-crypto-sprint-seeks-public-input-broader-rules

[2] AInvest, “Bitcoin News Today: CFTC Launches Third Crypto Sprint to Address Systemic Risks, Global Standards” https://www.ainvest.com/news/bitcoin-news-today-cftc-launches-crypto-sprint-address-systemic-risks-global-standards-2508/

[3] AInvest, “CFTC Unveils Crypto Sprint to Accelerate Digital Asset Regulation” https://www.ainvest.com/news/cftc-unveils-crypto-sprint-accelerate-digital-asset-regulation-2508/

[4] OKX, “How Contracts Are Shaping the Cryptocurrency Market” https://www.okx.com/learn/contracts-cryptocurrency-market-trends

[5] Bloomberg, “As Crypto Duties Loom, CFTC Is Hit by Staff Cuts and Turmoil” https://www.bloomberg.com/news/features/2025-08-21/as-crypto-duties-loom-cftc-is-hit-by-staff-cuts-and-turmoil?srnd=phx-markets