Regulators Greenlight Spot Crypto Trading on Registered Exchanges

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued a staff statement clarifying that exchanges registered with either agency are not prohibited from facilitating the trading of certain spot crypto asset products. This action, announced on September 2, 2025, is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint initiatives, which aim to create regulatory clarity and foster innovation in the digital asset markets. The joint effort aligns with the recommendations of the President’s Working Group on Digital Asset Markets report, which emphasized the importance of regulatory coordination to ensure the United States remains a leading hub for blockchain-based innovation [1].

The joint statement outlines the staff views of both agencies, emphasizing that current law does not prohibit SEC- or CFTC-registered exchanges from enabling the trading of these products. This includes leveraged, margined, or financed transactions. The initiative is intended to expand trading venue options for market participants and promote regulatory clarity. The statement also highlights that the Commodity Exchange Act (CEA) typically requires certain retail commodity transactions to be executed on CFTC-registered markets or foreign boards of trade, but an exception allows such transactions to occur on SEC-registered national securities exchanges [2].

The SEC and CFTC staff have pledged to review any necessary filings or requests submitted by exchanges seeking to facilitate the trading of these products. Market participants are encouraged to engage with the SEC’s Division of Trading and Markets or the CFTC’s Division of Market Oversight and Division of Clearing and Risk for further guidance. Clearinghouses are also permitted, under the staff’s view, to partner with custodians to maintain customer accounts, with both agencies standing ready to address any regulatory concerns [3].

The statement further emphasizes the importance of transparency and market surveillance. The agencies believe that shared reference pricing data among exchanges enhances effective oversight, and they are prepared to support information-sharing efforts. Additionally, the public dissemination of trade data by exchanges can provide valuable market intelligence. Both agencies are also focused on promoting fair and orderly markets, ensuring that execution efficiency and transparency help drive competition and trading opportunities for participants [4].

SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline D. Pham both highlighted the significance of the joint statement, viewing it as a step forward in fostering innovation while maintaining investor protections. Atkins noted that the SEC remains committed to ensuring regulatory frameworks support innovation and competition in digital asset markets. Pham echoed these sentiments, emphasizing that the joint effort reflects a collaborative approach to empowering American innovation in the crypto space [5].

While the joint staff statement is not a formal regulation and has no legal effect, it signals a shift in regulatory tone and approach toward digital assets. The move follows a period of regulatory uncertainty and conflicting signals under the previous administration. By clarifying that registered exchanges can facilitate spot crypto trading, the agencies aim to provide market participants with the flexibility needed to innovate while still adhering to investor protection principles.

Source:

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

[5] 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)