"Regulators Open Door for Crypto on Wall Street Exchanges"

The U.S. Securities and Exchange Commission (SEC) has unveiled a comprehensive agenda to modernize its regulatory approach to cryptocurrencies, signaling a pivot toward supporting innovation and reducing compliance burdens for market participants. Under the leadership of SEC Chair Paul Atkins, the agency has outlined plans to propose new rules for the offer and sale of digital assets, including potential exemptions and safe harbors, while also clarifying how its broker-dealer regulations apply to the crypto industry [1]. This initiative builds on preliminary announcements made by Atkins in July and aligns with the broader goals of streamlining regulations and enhancing market efficiency.

A significant component of the agenda involves potential amendments to SEC rules to allow for the trading of cryptocurrencies on national securities exchanges and alternative trading systems. This shift could mark a pivotal moment for the crypto industry, which has long lobbied for clearer regulatory pathways to facilitate integration with traditional financial markets [1]. According to Atkins, the agenda reflects a “new day” at the SEC, emphasizing the commission’s commitment to fostering innovation, capital formation, and investor protection [1]. The agenda also includes plans to propose a framework for the “rationalization” of disclosures, aimed at improving transparency and reducing risks for investors.

The regulatory changes are part of a broader effort to respond to the evolving digital asset landscape and the expectations of the market. The SEC’s actions come amid a shift in political leadership, with President Donald Trump having pledged to support the adoption of digital assets during his campaign. In contrast to the previous administration’s aggressive enforcement actions against crypto exchanges like Coinbase and Binance, the Trump-era SEC has dropped those cases, signaling a more accommodating regulatory stance [1].

In parallel, the SEC and the Commodity Futures Trading Commission (CFTC) have issued a joint staff statement under the auspices of the SEC’s Project Crypto and the CFTC’s Crypto Sprint. The statement clarifies that registered U.S. exchanges—whether SEC-registered national securities exchanges or CFTC-registered designated contract markets—are not prohibited from facilitating the trading of certain spot crypto asset products [2]. This clarification is expected to promote greater market choice and competition, allowing major traditional exchanges like the Nasdaq or the New York Stock Exchange to potentially offer direct trading in digital assets like Bitcoin and Ethereum [4].

The joint guidance also outlines several considerations for market participants, including the handling of margin, clearing, and settlement, as well as the importance of public dissemination of trade data to enhance market transparency [2]. Additionally, it emphasizes the need for collaboration between the SEC and CFTC to address regulatory questions related to commercial relationships between derivatives clearing organizations and national securities exchanges. This coordination is intended to ensure that technological innovation in crypto trading is supported while maintaining investor protections.

While the proposed changes are widely viewed as a positive development for the crypto industry, they also raise questions about the potential impact on smaller firms. Some analysts have noted that increased regulatory clarity may attract institutional investors and traditional finance participants to the crypto space, but it could also impose compliance burdens on startups that lack the resources to navigate complex regulatory requirements [4]. The balance between fostering innovation and ensuring investor protection remains a central challenge for the SEC, as it continues to refine its approach to regulating digital assets.

The regulatory agenda also includes a review of the SEC’s previous policies, with a focus on withdrawing initiatives from the prior administration that were seen as inconsistent with the goals of smart and effective regulation [3]. As part of this effort, the SEC is exploring ways to simplify capital-raising processes for private businesses and reduce disclosure burdens for public companies, particularly in the context of shareholder proposals.

Source:

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

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

[3] Statement on the Spring 2025 Regulatory Agenda (https://www.sec.gov/newsroom/speeches-statements/atkins-2025-regulatory-agenda-090425)

[4] SEC and CFTC's new joint guidance 'opens the door for ...' (https://www.theblock.co/post/369192/sec-cftc-new-joint-guidance)