CFTC Expands Crypto Sprint to Address Retail Trading Risks and Platform Oversight

The U.S. regulatory framework for digital assets is accelerating under the dual initiatives of the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC), both of which are working to strengthen the nation's leadership in the crypto space. The CFTC has launched the second phase of its “Crypto Sprint,” broadening its focus beyond the initial efforts on spot trading rules to address broader risks in the market, including those related to leveraged, margined, and financed retail trading on regulated exchanges [1]. Acting Chair Caroline D. Pham emphasized that the initiative will help shape federal oversight of digital asset platforms by gathering feedback from market participants, investors, and innovators [1].

The public consultation period remains open until October 20, 2025, during which the CFTC will evaluate the input to inform future rulemaking. This phase follows the first stage of the initiative, which concentrated on creating a framework for spot trading on registered futures exchanges. The positive response from stakeholders prompted the CFTC to expand its regulatory scope to include other key areas outlined in the President’s Working Group on Digital Asset Markets report, such as platform registration, custody, and record-keeping requirements [1].

The CFTC’s efforts are being coordinated with the SEC’s “Project Crypto,” a parallel initiative aimed at modernizing securities laws to accommodate the growing influence of digital assets. Together, these regulatory pushes reflect the White House’s broader strategy to reinforce U.S. leadership in digital finance, as highlighted in a joint statement by CFTC and SEC officials [1].

The collaboration between the two agencies is seen as a strategic move to align regulatory standards and reduce confusion in the market, ensuring that innovation is encouraged without compromising market integrity. The White House has supported these efforts as part of a larger campaign to position the U.S. as a global leader in digital assets. The President’s Working Group report underscored the importance of interagency cooperation to manage interrelated risks effectively [1].

Public feedback is a central component of the CFTC’s approach. By engaging a broad range of stakeholders, the agency aims to gather diverse perspectives before finalizing its regulations. The initiative is designed to ensure that future rules support innovation while maintaining investor protection and market stability [1].

These regulatory shifts are part of a broader trend across federal agencies to reshape the digital asset landscape. The CFTC and SEC are joined by federal banking regulators, who have also moved to permit greater crypto activity by banks, signaling a unified regulatory front [1]. The White House’s recent signing of the GENIUS Act in July 2025 further underscores this trend, laying the foundation for a federal framework for stablecoin activities.

Industry stakeholders and political figures are also showing support. The Winklevoss twins recently contributed $21 million to a crypto PAC aligned with both the CFTC’s Crypto Sprint and the SEC’s Project Crypto [1]. The timing of the donation highlights the growing influence of digital asset policy in U.S. financial and political arenas.

Collectively, the CFTC’s Crypto Sprint and the SEC’s Project Crypto are shaping a regulatory environment that aims to promote innovation and competition in the global digital asset market. With formal rulemaking and legislative processes in the next phase, the U.S. is positioning itself for a leading role in the evolving digital finance landscape.

Source:

[1] CFTC Launches Crypto Sprint With Public Consultation (https://coinpedia.org/news/cftc-launches-crypto-sprint-with-public-consultation-open-until-october-20-2025/)