Regulators Greenlight Spot Crypto Trading on Exchanges

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued a joint staff statement clarifying that registered exchanges are not prohibited from facilitating the trading of certain spot crypto asset products. This move aligns with broader regulatory efforts to foster innovation in digital asset markets while ensuring investor and customer protections remain intact. The statement, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint initiatives, underscores the agencies' shared objective to promote market competition and provide regulatory clarity to market participants [1].

The joint effort by the SEC and CFTC reflects a coordinated approach to enabling the listing and trading of spot crypto assets on national securities exchanges and commodity markets. Under the Commodity Exchange Act, leveraged or margined retail commodity transactions must typically occur on registered markets. However, the statement clarifies that these requirements do not extend to spot crypto products traded on SEC-registered national securities exchanges (NSEs), CFTC-registered designated contract markets (DCMs), or foreign board of trade (FBOTs) [2]. This interpretation removes a potential barrier to the development of a robust U.S.-based spot crypto trading ecosystem and positions the U.S. to maintain a competitive edge in digital finance innovation [3].

The joint statement outlines several key considerations for market participants. It confirms that clearinghouses may partner with custodians to maintain customer accounts, and that the SEC and CFTC will review applications from exchanges seeking to facilitate spot crypto trading. The statement also highlights the importance of transparency and public dissemination of trade data as tools to promote fair and orderly markets. Additionally, it emphasizes that the Divisions will engage with exchanges on issues related to effective market surveillance and the sharing of reference pricing data [4].

The regulatory clarity provided by the joint statement has been welcomed as a significant step in reversing previous regulatory ambiguity that discouraged U.S. innovation in digital asset markets. SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham both emphasized the importance of collaboration in supporting the growth of the industry. They noted that the joint initiative aligns with the broader goals of the President’s Working Group on Digital Asset Markets, which aims to strengthen American leadership in digital financial technology [5].

For market participants, the joint statement represents a green light to pursue regulatory compliance and operational readiness for spot crypto trading. Exchanges and trading platforms are encouraged to engage with the SEC and CFTC staff to navigate the necessary regulatory frameworks. This proactive approach is intended to facilitate a smoother transition into a more structured and transparent spot crypto trading environment. As the U.S. continues to finalize broader regulatory legislation for digital assets, this joint guidance serves as an important interim step in creating a more favorable environment for innovation [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] 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)