Regulators Align to Clear Path for Spot Crypto Trading on U.S. Exchanges

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken a pivotal step toward regulatory coordination in digital asset markets, issuing a joint statement on September 2, 2025, that clarifies the legal permissibility of trading certain spot crypto asset products on registered exchanges. This move, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, aligns with the President’s Working Group on Digital Asset Markets report on "Strengthening American Leadership in Digital Financial Technology." The statement affirms that SEC- and CFTC-registered exchanges are not prohibited from facilitating such trading under current law, signaling a shift toward a more accommodating regulatory posture for the crypto industry. The initiative emphasizes the need to reduce ambiguity and foster innovation within the U.S. financial system.

SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline D. Pham highlighted the importance of regulatory clarity in supporting market participants and innovation. Both emphasized that the joint statement is a foundational step toward harmonizing the regulatory frameworks of the two agencies, which have historically operated in parallel jurisdictions. Atkins underscored the SEC’s commitment to ensuring that regulatory frameworks support innovation and competition, while Pham noted that the previous administration had sent “mixed signals” that discouraged progress in digital asset markets. The joint effort is intended to correct this by promoting a unified approach to crypto asset regulation, as outlined in the White House report.

The joint staff statement outlines key considerations for market participants seeking to operate in the U.S. digital asset space. It states that existing rules allow clearinghouses to partner with custodians to maintain customer accounts and encourages collaboration between SEC- and CFTC-registered entities to enhance market surveillance and transparency. The Divisions also emphasized the importance of public dissemination of trade data, promoting fair and orderly markets, and supporting technological innovation with investor protections in place. These principles aim to create a regulatory environment that balances innovation with accountability and safeguards for market integrity.

In addition to the joint statement, the SEC and CFTC announced a roundtable on regulatory harmonization to be held on September 29, 2025. This event will serve as a platform for discussing potential areas of cooperation, such as aligning product and venue definitions, streamlining data standards, and developing coordinated exemptions for innovation. The roundtable reflects the agencies’ broader commitment to creating a “reliable playbook” for market participants and investors, in line with their statutory mandates. The agencies also signaled openness to exploring innovations like 24/7 trading, perpetual contracts, and portfolio margining, provided these developments adhere to investor protection standards.

The joint staff statement has been broadly welcomed as a win for the crypto industry, particularly for market participants who have operated in legal uncertainty. By providing clarity on the permissibility of trading spot crypto assets on regulated exchanges, the SEC and CFTC have laid the groundwork for U.S. exchanges to begin listing digital asset products, potentially including major cryptocurrencies like Bitcoin and Ether. This move could encourage a broader range of crypto assets to become available on regulated platforms in the U.S., reversing a trend that has seen innovation shift overseas. However, the joint statement is not a rule or legal safe harbor and does not alter existing laws, meaning exchanges must still follow standard regulatory processes to list new products.

Looking ahead, the agencies have indicated that further guidance and rulemaking are anticipated as Project Crypto and the Crypto Sprint continue. This will likely include more detailed frameworks for compliant spot crypto trading, which could take the form of formal proposals or additional staff guidance. Market participants are encouraged to stay engaged with the SEC and CFTC through comment opportunities and industry dialogues to help shape a regulatory environment that supports innovation while maintaining investor protection. The joint efforts of the SEC and CFTC signal a renewed focus on ensuring that the U.S. remains a competitive and innovative leader in the global digital asset market.

Source:

[1] SEC and CFTC Staff Issue Joint Statement on Trading Certain Spot Crypto Asset Products (https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products)

[2] SEC-CFTC Joint Staff Statement (Project Crypto-090225) (https://www.sec.gov/newsroom/speeches-statements/sec-cftc-project-crypto-090225)

[3] Joint Statement from the Chairman of the SEC and Acting Chairman of the CFTC (https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525)

[4] SEC and CFTC Issue Joint Statement on Regulatory Harmonization (https://www.sec.gov/newsroom/press-releases/2025-112-sec-cftc-issue-joint-statement-regulatory-harmonization-efforts-will-co-host-roundtable-sept-29)

[5] SEC and CFTC Staff Clear Path for Spot Crypto Trading on Regulated Exchanges (https://www.aoshearman.com/en/insights/ao-shearman-on-fintech-and-digital-assets/sec-and-cftc-staff-clear-path-for-spot-crypto-trading-on-regulated-exchanges)