Regulators Open Door to Clearer Crypto Trading Landscape

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a joint initiative to facilitate the trading of certain spot crypto asset products on registered exchanges. The effort, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, marks a significant step in the regulatory coordination between the two agencies. The initiative is aligned with the recommendations of the President’s Working Group on Digital Asset Markets report titled “Strengthening American Leadership in Digital Financial Technology,” which emphasizes the need for regulatory clarity to support innovation in blockchain technology and digital asset markets [1].

The joint staff statement clarifies that current laws do not prohibit SEC- or CFTC-registered exchanges from facilitating the trading of these spot crypto asset products. It underscores the commitment of both agencies to promote trading venue choice and optionality for market participants. SEC Chairman Paul Atkins emphasized that the initiative aims to support innovation and competition in the rapidly evolving digital asset markets, stating, “Market participants should have the freedom to choose where they trade spot crypto assets” [1]. Acting CFTC Chairman Caroline D. Pham added that the collaborative effort represents a continuation of the Trump administration’s objective to position the U.S. as the leading hub for crypto innovation [1].

The initiative is expected to create a more favorable environment for registered exchanges, designated contract markets (DCMs), and foreign boards of trade (FBOTs) seeking to offer spot crypto asset products. The Divisions responsible for oversight at both agencies will support the consideration of exchange trading in these products and will be available to address any regulatory questions. This includes considerations related to margin, clearing, and settlement, as well as the monitoring of underlying markets and the public dissemination of trade data [2]. These elements are crucial for ensuring that the markets remain fair and orderly while fostering innovation.

The joint statement also highlights the importance of investor and customer protections in the context of technological advancements in trading. The Divisions will work closely with market participants to encourage innovation while maintaining robust safeguards for market integrity. This approach reflects the agencies’ acknowledgment of the need for a balanced regulatory framework that supports the growth of digital asset markets without compromising the stability and transparency of the financial system [2].

As the agencies move forward with this initiative, they have also invited market participants to reach out with any questions or concerns regarding the implementation of the new regulatory approach. This open engagement is intended to ensure that the transition is smooth and that all stakeholders are well-informed. The joint effort is viewed as a significant development in the regulatory landscape for digital assets, especially in the absence of a comprehensive legislative framework from Congress [3]. The agencies continue to work under existing regulations and authorities to create a conducive environment for digital assets within the traditional financial system [3].

Source:

[1] SEC and CFTC Staff Issue Joint Statement On Trading Certain Spot Crypto Asset Products (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 Firms Trading of Spot Crypto (https://www.coindesk.com/policy/2025/09/02/u-s-sec-cftc-combine-forces-to-clear-registered-firms-trading-of-spot-crypto)