Regulators Align to Rewrite the Rules of Crypto's Wild West

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken a significant step toward harmonizing the regulation of digital assets, signaling a potential shift in how the U.S. approaches crypto markets. On September 5, 2025, the two agencies announced a joint roundtable scheduled for September 29 in Washington, D.C., aimed at addressing the regulatory challenges facing the sector. This event marks a coordinated attempt to bridge jurisdictional gaps and provide much-needed clarity for market participants [1].

The agencies emphasized that existing U.S. law does not prevent registered exchanges from listing and facilitating spot crypto asset products, a landmark acknowledgment that could pave the way for broader institutional adoption. Both the SEC and CFTC outlined a shared intent to harmonize definitions, reporting standards, capital requirements, and to create exemptions for innovation within existing regulatory frameworks. The collaboration is seen as an effort to streamline rules that have long been fragmented, causing uncertainty for investors and developers [1].

Key priorities highlighted for the roundtable include adapting to 24/7 trading environments, addressing event and perpetual contracts, establishing regulatory flexibility for new products, and tackling the decentralized finance (DeFi) sector. These areas reflect the evolving nature of digital asset markets and the recognition that innovation has outpaced traditional oversight. By bringing these topics to the forefront, the agencies are acknowledging the need for a modernized regulatory approach that aligns with the realities of the crypto industry [1].

This initiative is part of larger efforts such as the SEC’s Project Crypto and the CFTC’s Crypto Sprint, both of which aim to modernize oversight while fostering innovation. The move builds on recommendations from the President’s Working Group on Digital Asset Markets, which has long advocated for clear and consistent regulatory frameworks. The Federal Reserve is also expected to contribute to this momentum with its own conference in October focusing on stablecoin business models and tokenized financial services [1].

For the U.S. crypto market, the implications of this regulatory shift are profound. For years, the absence of a clear regulatory pathway has pushed talent and capital offshore, with many exchanges and projects seeking more favorable environments in Europe, Asia, and the Middle East. The SEC and CFTC’s clarification that existing law permits certain spot products—coupled with the promise of harmonized rules—could reverse this trend by making the U.S. a more attractive hub for innovation. Engaging directly with market participants is expected to lead to reforms that reflect industry needs rather than rigid top-down mandates [1].

The joint message from SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham underscored the importance of inter-agency cooperation in turning the U.S.’s complex regulatory structure into a competitive advantage. If successful, this harmonization could not only clarify existing rules but also rebuild investor trust, strengthen the country’s position in financial innovation, and mitigate the risks of regulatory arbitrage that have plagued the sector. The September roundtable represents the first step in a broader initiative to evolve the U.S. regulatory landscape and position it as a leader in digital finance [1].

Source: [1] Is U.S. Crypto Regulation Finally Here? (https://cryptorank.io/news/feed/e6393-is-us-crypto-regulation-finally-here)