Regulators Open Door for Crypto Innovation on Major Exchanges

U.S. financial regulators have signaled that the legal landscape for spot crypto trading is becoming more permissive. In a joint staff statement, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) confirmed that current U.S. law does not prohibit registered exchanges—such as national securities exchanges, designated contract markets, and foreign boards of trade—from listing spot cryptocurrency products, including those with leverage and margin features. This marks a pivotal development in the regulatory approach to digital assets, with both agencies expressing willingness to review proposals and engage with market participants to facilitate the creation of new trading products [1].

The guidance, which was issued on September 2, 2025, follows recommendations from the President’s Working Group on Digital Asset Markets. The group emphasized the importance of regulatory clarity in retaining blockchain innovation within the United States. The statement also builds on recent legislative efforts, including the passage of the CLARITY Act by the House of Representatives, which seeks to establish clearer rules for crypto market structures [1]. The joint staff statement aims to streamline the regulatory environment by encouraging the use of existing frameworks, thereby reducing legal uncertainty for exchanges considering the listing of spot crypto assets [4].

The potential participants in this evolving market include major regulated exchanges such as Nasdaq, the New York Stock Exchange (NYSE), the CME Group, and Cboe Global Markets. These venues, along with certain foreign boards of trade recognized by the CFTC, may now be eligible to offer spot crypto trading products. The statement also highlights the importance of collaboration between exchanges and regulators, particularly in areas such as custody, clearing, and market surveillance. Regulators are prepared to assist exchanges in navigating these operational challenges and ensuring that new markets align with investor protection and transparency standards [1].

Operational considerations for exchanges seeking to list spot crypto products include the use of clearinghouses in partnership with custodians for client account management. Additionally, sharing pricing data among exchanges can support more effective market monitoring and oversight. The regulators also emphasize the importance of transparency in disseminating trade data, which can enhance public awareness and support fair and orderly trading. Exchanges are expected to apply appropriate principles to ensure that their operations promote competition and efficiency [3].

This regulatory shift represents a departure from a historically enforcement-oriented approach, particularly under the SEC, which has previously pursued legal action against several major crypto platforms. The new collaborative tone between the SEC and CFTC reflects a broader administration-wide initiative to support innovation in the digital asset space. SEC Chair Paul Atkins emphasized the need for market participants to have the “freedom to choose where they trade spot crypto assets,” while CFTC Acting Chair Caroline Pham highlighted the move as a transition from mixed signals to a more supportive regulatory environment [4].

The joint staff statement builds on recent actions by the CFTC, which had already authorized spot crypto trading on registered futures exchanges. This coordinated effort, under initiatives like the SEC’s Project Crypto and the CFTC’s Crypto Sprint, demonstrates a growing momentum toward integrating digital assets into the broader financial infrastructure. For investors and market participants, the message is clear: the U.S. is actively working to create a regulatory environment that supports innovation while maintaining high standards of investor protection and market integrity [4].

Source:

[1] US Regulators Clarify Rules for Spot Crypto Trading (https://cointelegraph.com/news/us-sec-cftc-joint-guidance-spot-crypto-trading)

[2] SEC, CFTC Staff Offer Path to Register Spot Crypto Asset (https://news.bloomberglaw.com/securities-law/sec-cftc-staff-offer-path-to-register-spot-crypto-asset-trades)

[3] Spot Crypto Trading in U.S. Allowed on Stock and (https://www.bitget.com/news/detail/12560604948790)

[4] SEC and CFTC Join Forces to Enable Spot Crypto Trading (https://dzilla.com/regulatory-opening-sec-and-cftc-join-forces-to-enable-spot-crypto-trading-on-registered-u-s-exchanges/)