U.S. Crypto Regulation Gains Momentum with CFTC-SEC Collaboration and Reshoring Trend

The U.S. regulatory landscape for cryptocurrencies is shifting rapidly as the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) move in tandem to reshape the industry. Acting CFTC Chair Caroline Pham announced “Project Crypto,” a sweeping initiative aimed at implementing key recommendations from a January executive order by Donald Trump. The project seeks to clarify the classification of digital assets, integrate decentralized finance (DeFi) entities into existing frameworks, and foster cross-agency collaboration on rulemaking and innovation sandboxes [1].

The CFTC’s efforts are closely aligned with the SEC’s pro-crypto strategy led by Chair Paul Atkins, who has championed a “reshoring” initiative to attract cryptocurrency businesses back to the U.S. This policy shift is already showing results, with several major firms relocating or expanding their U.S. operations [2].

The executive order triggered the formation of a Working Group on Digital Asset Markets, which recently issued a report containing 18 recommendations. Two of these specifically target the CFTC, including the development of new guidance for classifying cryptocurrencies as commodities and the establishment of registration standards for DeFi entities. The group also recommended updating rules to support blockchain-based derivatives and enhancing coordination with the SEC and Treasury [3].

Collaborative rulemaking and the potential launch of a regulatory sandbox are also on the table, reflecting a broader effort to create a clear and supportive environment for innovation. A long-term goal is to enable regulated firms to offer a range of services through unified digital platforms. Additionally, the report urged Congress to clarify the division of responsibilities between the CFTC and the SEC, with a specific proposal for the CFTC to have explicit authority over spot markets for non-security digital assets [4].

Pham emphasized that the CFTC has already made progress in this area, including direct engagement with industry leaders and the repeal of outdated guidance. Recent consultations on 24/7 trading for derivatives and the introduction of perpetual contracts have also received positive feedback from the crypto community [5].

Trump’s nomination of Brian Quintenz to lead the CFTC adds further momentum, though his confirmation hearing has been postponed at the request of the White House [6].

The reshoring trend is becoming increasingly evident as companies previously based in offshore jurisdictions return to the U.S. In April, Bulgaria-based Nexo re-entered the American market, attributing its move to improved regulatory clarity. Soon after, Wintermute, a London-based trading firm, opened a New York office. In June, OKX, a Seychelles-based exchange, relaunched in the U.S. and established a new headquarters in California after settling with American regulators [7].

Meanwhile, Chinese mining giant Bitmain announced plans to open its first U.S.-based ASIC production facility by early 2026 and to establish a new headquarters in Texas or Florida by the end of Q3 2024. Other major mining companies, including Canaan and MicroBT, are also relocating production operations to the U.S. [8].

Domestic players are also capitalizing on the favorable environment. Kraken moved its global headquarters to Wyoming in June, citing the state’s supportive regulatory climate, while MoonPay relocated from Miami to New York and secured licenses to operate across all 50 states [9].

Collectively, these developments signal a growing confidence in the U.S. as a hub for the next phase of crypto industry growth, driven by a regulatory environment that is becoming increasingly accommodating and forward-looking.

---

Source: [1][2][3][4][5][6][7][8][9]

[1]https://coinpaper.com/10336/crypto-sprint-kicks-off-as-cftc-and-sec-race-toward-reform