Regulators Finally Light the Green Light for U.S. Crypto Trading

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly signaled a significant shift in the U.S. regulatory approach toward crypto asset markets, clearing the path for spot crypto trading on regulated exchanges. In a joint staff statement issued on September 2, 2025, the agencies clarified that current law does not prohibit SEC-registered national securities exchanges or CFTC-registered exchanges from facilitating the trading of certain spot crypto commodity products [1]. This development is part of a broader initiative—Project Crypto by the SEC and Crypto Sprint by the CFTC—aimed at promoting regulatory clarity and innovation in the digital asset space [3]. The joint effort aligns with recommendations from the President’s Working Group on Digital Asset Markets, which emphasized the need to strengthen U.S. leadership in blockchain technology and digital financial innovation [2].

The joint staff statement outlines that leveraged, margined, or financed retail commodity transactions involving crypto assets can now occur on registered exchanges, as opposed to being confined to unregulated platforms [3]. This interpretation of the law is intended to provide market participants with greater flexibility and choice in trading venues, supporting a more dynamic and competitive crypto ecosystem. The SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing & Risk emphasized that they are prepared to review exchange proposals and engage with market participants to facilitate the launch of spot crypto trading [4]. Market participants are encouraged to submit filings or request regulatory relief to begin listing crypto products, with the agencies committing to a prompt and collaborative review process [5].

The joint staff statement does not constitute a new rule or legal safe harbor; rather, it reflects the staff views of the agencies and provides no legal force [1]. Nonetheless, it represents a critical step in reducing the regulatory uncertainty that has long surrounded the trading of crypto assets in the U.S. The statement affirms that existing laws permit regulated exchanges to offer spot crypto trading and underscores that exchanges must comply with established regulatory processes, such as filing rule changes or seeking relief from existing requirements [5]. This approach aligns with industry calls for tailored regulatory frameworks that accommodate innovation while ensuring investor protections [6].

A key focus of the joint effort is the promotion of market integrity and investor protection. The agencies emphasized the importance of secure custody arrangements, robust market surveillance, and transparent data dissemination in any new spot crypto markets [5]. For example, clearinghouses are permitted to partner with qualified custodians to manage customer accounts, and regulators are open to innovative trading models provided that core safeguards remain in place [6]. The statement also encourages collaboration among exchanges in monitoring underlying markets and sharing reference pricing data, which is expected to enhance overall market surveillance and transparency [3]. Additionally, the agencies highlighted the significance of public dissemination of trade data, as it provides valuable information to investors and supports a fair and orderly trading environment [4].

Looking ahead, the agencies have urged market participants to engage proactively with SEC and CFTC staff to navigate the path toward launching spot crypto trading. Both agencies have opened communication channels for this purpose and are prepared to provide guidance on the necessary steps for launching new products [5]. Industry observers anticipate that major U.S. exchanges may begin exploring listings of spot digital assets, including Bitcoin and Ether, in the coming months. The CFTC has already taken steps toward this end, recently soliciting public input on how to facilitate the listing of spot crypto contracts on futures exchanges [6]. As the SEC and CFTC continue their respective initiatives—Project Crypto and Crypto Sprint—further guidance and potential rulemaking are expected to clarify the framework for compliant trading in this space [6].

The joint staff statement is being viewed as a positive development for the U.S. digital asset market, signaling a more welcoming regulatory stance after years of ambiguity. By providing clarity on the legal permissibility of spot crypto trading, the agencies have set the stage for regulated exchanges to enter the market, potentially expanding access to crypto products for retail and institutional investors alike. However, the statement also underscores that regulatory compliance remains a key requirement, and any new trading venues must adhere to established standards for market integrity and investor protection. As the U.S. works to solidify its position as a global leader in digital asset innovation, the collaboration between the SEC and CFTC is expected to play a pivotal role in shaping the future of crypto trading.

Source: [1] SEC-CFTC Joint Staff Statement (Project Crypto- ...) (https://www.sec.gov/newsroom/speeches-statements/sec-cftc-project-crypto-090225) [2] SEC and CFTC Staff Issue Joint Statement on Trading ... (https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products) [3] SEC and CFTC Staff Clear Path for Spot Crypto Trading on ... (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)