CFTC Launches Second Crypto Sprint to Shape Spot Market Regulation

The U.S. Commodity Futures Trading Commission (CFTC) has initiated its second “Crypto Sprint” under President Donald Trump’s administration, aiming to accelerate the development of regulatory frameworks for the digital asset market [1]. The initiative follows the 166-page White House report released earlier this year, which included 18 recommendations for the CFTC, two of which are under the agency’s direct authority [2]. Acting Chair Caroline D. Pham emphasized that stakeholder input would be essential to shape new approaches to oversight and fulfill the Trump administration’s broader digital asset agenda [3].

The second sprint is focused on public feedback regarding the regulation of spot crypto trading, especially concerning leveraged, margined, or financed retail activity on CFTC-registered exchanges [4]. This phase is part of a broader, two-part strategy to ensure regulatory clarity and market readiness for digital assets. The first sprint, launched earlier this month, examined how spot crypto asset contracts could be traded on CFTC-registered futures exchanges [5].

Leadership uncertainty at the CFTC, however, has raised questions about the agency’s capacity to deliver on its goals. Brian Quintenz, Trump’s nominee for CFTC chair, remains unconfirmed by the Senate. The agency currently operates with only two commissioners—Pham and Kristin N. Johnson—with Johnson expected to step down later this year. The absence of a confirmed chair and the departure of several senior commissioners have created a leadership vacuum that advocacy groups have highlighted as a potential risk to regulatory progress [6].

The White House report urged the CFTC to provide clearer guidance on the classification of cryptocurrencies as commodities, address DeFi compliance with registration requirements, and outline permissible activities for CFTC-regulated entities in the crypto space [7]. The second recommendation called for amending existing rules to better accommodate blockchain-based derivatives, while the remaining 16 required coordination with the Treasury and the SEC [8].

In parallel, Pennsylvania State Rep. Ben Waxman introduced legislation aimed at preventing public officials from profiting off cryptocurrency during their time in office [9]. His bill, HB1812, would prohibit elected officials from launching, promoting, or trading tokens in which they hold a financial interest. If passed, it would require officials to divest crypto holdings within 90 days and impose fines or imprisonment for violations. Waxman cited concerns over conflicts of interest, particularly regarding Trump’s involvement in crypto ventures, as a key motivation [10].

The CFTC’s public consultation period for the second sprint remains open until October 20, 2025, allowing industry stakeholders to contribute to shaping the regulatory environment [11]. This aligns with broader efforts by the administration to foster innovation in digital asset markets, including the enactment of the GENIUS Act, signed into law by President Trump on July 18, 2025 [12].

The regulatory push reflects a significant shift from previous administrations, with both the CFTC and SEC moving to accommodate crypto integration rather than adopting an adversarial stance [13]. This collaborative approach is seen as a strategic move to position the U.S. as a global leader in digital asset markets while maintaining investor protections [14].

Source:

[1] CLS Blue Sky Blog, [https://clsbluesky.law.columbia.edu/2025/08/22/davis-polk-discusses-cryptos-integration-into-the-traditional-financial-system/](https://clsbluesky.law.columbia.edu/2025/08/22/davis-polk-discusses-cryptos-integration-into-the-traditional-financial-system/)

[2] Coinpaper, [https://coinpaper.com/10659/cftc-kicks-off-second-crypto-sprint-under-trump](https://coinpaper.com/10659/cftc-kicks-off-second-crypto-sprint-under-trump)

[3] Coinpedia, [https://coinpedia.org/news/cftc-launches-crypto-sprint-with-public-consultation-open-until-october-20-2025/](https://coinpedia.org/news/cftc-launches-crypto-sprint-with-public-consultation-open-until-october-20-2025/)

[4] AInvest, [https://www.ainvest.com/news/cftc-launches-crypto-sprint-shape-spot-market-regulation-2508/](https://www.ainvest.com/news/cftc-launches-crypto-sprint-shape-spot-market-regulation-2508/)

[5] CCN.com, [https://www.ccn.com/news/crypto/cftc-crypto-sprint-deliver-trumps-vision-us-leadership-digital-assets/](https://www.ccn.com/news/crypto/cftc-crypto-sprint-deliver-trumps-vision-us-leadership-digital-assets/)