CFTC Aligns with Industry Leaders to Build Balanced Crypto Framework

The Commodity Futures Trading Commission (CFTC) has significantly reshaped its approach to digital asset regulation by appointing executives from leading Wall Street institutions to key advisory roles, signaling a strategic shift toward integrating traditional finance expertise into the evolving crypto market framework. On September 20, 2025, the CFTC announced the appointment of Scott Lucas, JPMorgan’s head of markets digital assets, and Sandy Kaul, Franklin Templeton’s executive vice president, as co-chairs of the Digital Asset Markets Subcommittee (DAMS) under the Global Markets Advisory Committee (GMAC). This move replaces Caroline Butler, the former co-chair, and underscores the CFTC’s intent to align with industry leaders in shaping regulatory frameworks for digital assets .

The DAMS subcommittee now includes four new members from prominent crypto and financial firms: Katherine Minarik (Uniswap Labs), Avery Ching (Aptos Labs), James Hill (BNY Mellon), and Ben Sherwin (Chainlink Labs). These additions aim to bridge traditional finance and decentralized innovation, with a focus on addressing risks and opportunities in tokenized markets. Scott Lucas emphasized the importance of collaboration, stating the subcommittee will work to “shape clear and effective regulatory frameworks in a well-structured digital asset market” .

This restructuring coincides with broader regulatory developments. On September 2, 2025, the CFTC and SEC jointly announced that federally registered exchanges—such as NYSE, Nasdaq, CBOE, and CME—can now list certain spot crypto assets without prohibitive restrictions. The guidance, while not formalized as regulation, provides a pathway for exchanges to seek approval for spot crypto trading, removing a key barrier for market expansion . Acting CFTC Chair Caroline Pham highlighted that this step supports “growth and development in crypto markets,” aligning with the White House’s push to streamline crypto regulation through existing agency authority .

The CFTC’s recent initiatives extend to public engagement. Its “Crypto Sprint” program, launched in August 2025, seeks input from industry participants, investors, and users to refine U.S. crypto regulations. The program remains open for public comment until October 20, 2025, reflecting a collaborative approach to policy design . Meanwhile, the White House is actively vetting candidates for the CFTC chairmanship, with a focus on appointing officials with crypto expertise to maintain momentum in regulatory modernization .

These moves highlight the CFTC’s alignment with the Trump administration’s pro-crypto agenda, including the recent signing of the GENIUS Act into law. The legislation, coupled with the House’s passage of crypto-related bills, signals a regulatory environment prioritizing innovation while balancing consumer protections. JPMorgan’s involvement in this process is particularly notable, as the bank has expanded into stablecoins and tokenized assets despite earlier skepticism from its CEO, Jamie Dimon .

The CFTC’s strategic appointments and regulatory updates reflect a broader trend of institutional adoption and legitimization of digital assets. By integrating Wall Street expertise into its advisory structure, the CFTC aims to address the complexities of crypto markets while fostering a framework that supports both innovation and investor confidence. As the subcommittee’s work progresses, market participants will likely monitor how these developments influence the classification of digital assets and the division of regulatory jurisdiction between the CFTC and SEC.