Regulators Greenlight Crypto Trading—A New Era Begins

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued a staff statement affirming that registered exchanges can facilitate trading in certain spot crypto assets under existing laws. This cross-agency initiative—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 clarifies that SEC-registered national securities exchanges and CFTC-registered designated contract markets (DCMs) are not prohibited from listing spot crypto commodity products. This marks a significant step toward promoting trading venue choice and encouraging innovation within the U.S. regulatory framework. SEC Chairman Paul Atkins emphasized the importance of allowing market participants the freedom to choose where they trade spot crypto assets, stating that the SEC is committed to fostering innovation and competition in these rapidly evolving markets [2].

A key focus of the joint staff statement is ensuring that existing legal frameworks accommodate the unique characteristics of crypto assets while safeguarding investor protections. The Divisions of Trading and Markets (SEC) and Market Oversight and Clearing & Risk (CFTC) are coordinating to provide regulatory clarity and support to market participants. This includes facilitating the prompt review of proposals and filings for trading in spot crypto products. The agencies have emphasized that while the joint statement does not create new rules or legal safe harbors, it reflects the staff’s view that current laws do not prohibit such trading activities. Market participants are encouraged to engage with the SEC and CFTC staff to discuss questions or concerns regarding the implementation of these initiatives [3].

The joint staff statement also outlines considerations for market participants, including the importance of secure custody and clearing arrangements, robust market surveillance, and transparent public reporting of trade data. The Divisions affirm that clearinghouses can partner with qualified custodians to maintain customer accounts, and they are prepared to address regulatory questions related to commercial relationships between DCOs and NSEs. Furthermore, the statement emphasizes the need for effective information sharing among trading venues to enhance market integrity. The agencies also highlighted the importance of maintaining fair and orderly markets, encouraging technological innovation while ensuring robust investor protections [4].

Looking ahead, the joint staff statement signals a more accommodating regulatory environment for the crypto industry. The SEC and CFTC have opened lines of communication for market participants to submit proposals and engage with regulators. Industry observers anticipate that U.S. exchanges may begin exploring listings for major crypto commodities like Bitcoin in the coming months. Additionally, the CFTC has recently solicited public input on listing spot crypto contracts on futures exchanges, potentially informing further regulatory changes. The agencies have also indicated that additional guidance and rulemaking may follow as Project Crypto and the Crypto Sprint continue to evolve. Market participants are encouraged to participate in upcoming comment opportunities and industry dialogues to help shape the regulatory landscape [5].

This regulatory shift is part of a broader agenda to revamp crypto policies and reduce compliance burdens for public companies. SEC Chair Paul Atkins highlighted the Commission’s renewed focus on supporting innovation, capital formation, and investor protection. This approach contrasts with the previous administration’s enforcement-heavy stance, which saw the SEC sue major crypto exchanges for alleged regulatory violations. The current administration has shifted toward a more balanced approach, aiming to foster innovation while maintaining market integrity. As the regulatory landscape continues to evolve, market participants are expected to benefit from a clearer, more supportive environment that encourages the growth of digital asset markets within the U.S. [6].

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)

[6] US SEC unveils agenda to revamp crypto policies, ease... (https://www.reuters.com/legal/government/us-sec-unveils-agenda-revamp-crypto-policies-ease-wall-street-rules-2025-09-04/)