Regulators Green Light Crypto Trading, Unifying Markets and Innovation

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have jointly clarified that registered exchanges are permitted to facilitate the trading of certain spot crypto asset products, marking a pivotal step in the regulatory landscape of digital assets. This development aligns with broader efforts to foster innovation in U.S. crypto markets and underscores the agencies’ coordinated approach under the leadership of SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline D. Pham. The joint statement, issued by the SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing and Risk, signals a departure from the previous administration’s uncertain stance and emphasizes the importance of regulatory clarity in supporting U.S. digital asset innovation [1].

The joint initiative clarifies that SEC- and CFTC-registered exchanges, including national securities exchanges (NSEs), designated contract markets (DCMs), and foreign boards of trade (FBOTs), are not prohibited from trading spot crypto assets. This includes products with leverage and margin features, subject to compliance with relevant regulations. The guidance supports the objectives outlined in the President’s Working Group on Digital Asset Markets report, which advocates for the U.S. to maintain global leadership in digital financial technology. The agencies also confirmed their readiness to review exchange proposals and provide support on custody, clearing, and market surveillance issues [2].

The statement has significant implications for traditional financial institutions and regulated market venues, as it opens the door for major exchanges like Nasdaq, the New York Stock Exchange, and CME Group to potentially list spot crypto products. While existing crypto-native platforms such as Coinbase and Kraken already offer such services, the joint guidance ensures that traditional finance players are not excluded from the market. This shift is expected to enhance competition, transparency, and investor access to digital assets. Industry leaders have welcomed the move, with Alexander Blume of Two Prime Digital Assets stating that the decision provides a “green light” for major exchanges to offer spot trading on leading digital assets [3].

The joint effort also reflects a broader policy push by the Trump administration to establish the U.S. as a global leader in cryptocurrency. Earlier in 2025, the administration signed legislation regulating stablecoins, and Congress is currently working on a comprehensive market structure bill for crypto assets. The initiative builds on the SEC’s “Project Crypto” and the CFTC’s “Crypto Sprint,” both of which aim to streamline the integration of digital assets into the U.S. financial system. Gerald Gallagher of the Sei protocol described the development as the end of a regulatory standoff, noting that the SEC and CFTC are now "rowing in the same direction" [4].

Market participants are encouraged to contact the SEC or CFTC for guidance as they prepare to submit necessary filings or seek relief. The agencies emphasized their commitment to transparency, fairness, and investor protection, while also recognizing the need for technological innovation in trading infrastructure. As the U.S. financial system adapts to the evolving crypto landscape, this joint statement represents a foundational step toward creating a more structured and regulated environment for spot crypto trading.

Source:

[1] 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)

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

[3] U.S. SEC, CFTC Combine Forces to Clear Registered ... (https://www.coindesk.com/policy/2025/09/02/u-s-sec-cftc-combine-forces-to-clear-registered-firms-trading-of-spot-crypto)

[4] SEC and CFTC clear path for US exchanges to trade spot crypto (https://blockchaintechnology-news.com/news/sec-and-cftc-clear-path-for-us-exchanges-to-trade-spot-crypto/)