Regulators Open Door for Global Crypto Platforms to Trade in U.S.

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued guidance affirming that regulated exchanges—both domestic and foreign—are not prohibited from listing spot crypto products under current U.S. law. The development marks a pivotal shift in the regulatory landscape for digital assets in the United States and aligns with broader efforts to foster innovation while ensuring investor protection and market integrity.

The joint staff statement from the SEC and CFTC clarifies that designated contract markets (DCMs), foreign boards of trade (FBOTs), and national securities exchanges (NSEs) can facilitate the trading of certain spot crypto asset products, including those with leverage and margin features. This includes products centered on “leverage, margin, and financed spot retail commodity transactions.” The guidance explicitly encourages market participants to engage with the SEC or CFTC to submit proposals and address technical questions, such as custody, clearing, and compliance with transparency and surveillance standards.

This move follows the recommendations of the President’s Working Group on Digital Asset Markets, which has consistently advocated for regulatory clarity to ensure U.S. leadership in blockchain innovation. The guidance underscores a coordinated effort by the SEC and CFTC to streamline the regulatory environment, making it more hospitable for both traditional financial institutions and crypto-native platforms. Notably, major exchanges such as Nasdaq, the New York Stock Exchange, and the CME Group may now pursue listings of spot crypto products, provided they meet regulatory requirements.

The development also signals an openness to foreign exchanges operating in the U.S. under specific conditions. The CFTC has indicated that foreign boards of trade (FBOTs), such as platforms previously excluded from the U.S. market like Binance and Bybit, could return to serve American traders by registering under existing frameworks, without needing the more cumbersome DCM status. This change has the potential to enhance liquidity and competition in U.S. crypto markets, providing American traders with direct access to global platforms that currently dominate the space.

The regulatory shift is also part of a broader legislative push. In July 2025, the House of Representatives passed the CLARITY Act, a market structure bill for cryptocurrencies, which is now expected to move to the Senate for consideration. The bill seeks to address structural issues in crypto trading and further define the roles of the SEC and CFTC in overseeing the sector. The administration of U.S. President Donald Trump has emphasized the importance of aligning U.S. policy with the evolving crypto market to prevent regulatory arbitrage and maintain global competitiveness.

Acting CFTC Chair Caroline Pham and SEC Chair Paul S. Atkins have been vocal about the importance of collaboration in achieving regulatory clarity. Pham has emphasized that the U.S. has historically allowed trading on registered foreign exchanges since the 1990s and is now extending that framework to crypto. This approach is intended to ensure that American markets remain attractive to global crypto participants while adhering to domestic oversight standards.

The regulatory clarity provided by the SEC and CFTC does not introduce new rules but highlights existing frameworks that have been underutilized or misunderstood. This distinction is important, as it positions the guidance as a foundational step rather than a legislative overhaul. The agencies have also stressed that they will continue to evaluate and refine their approach as the market evolves, particularly in light of ongoing debates in Congress over the CLARITY Act and other legislative measures.

In parallel, the CFTC has signaled its commitment to a more proactive and business-friendly stance under the Trump administration. Nominee Brian Quintenz, a former pro-crypto commissioner, is expected to lead the agency, and interim leadership has already taken steps to streamline processes and reduce regulatory friction. This aligns with the administration’s broader goal of repositioning the U.S. as a global crypto hub and countering the growing regulatory influence of the European Union’s Markets in Crypto Assets (MiCA) framework.

The impact of this regulatory shift is expected to be significant. For exchanges, the ability to list spot crypto products on regulated platforms could attract more institutional participation and reduce reliance on less transparent or offshore markets. For traders, it could mean increased access to a broader range of crypto assets, enhanced liquidity, and a more competitive trading environment. The U.S. market is poised to benefit from a more inclusive and innovative approach, with clear regulatory boundaries that support both investor protection and technological advancement.

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-Registered Exchanges Receive Blessing to ... (https://finance.yahoo.com/news/sec-cftc-registered-exchanges-receive-021533241.html) [3] Unlocking the Crypto Revolution: US Regulations Embrace ... (https://thecoinacademy.co/news/crypto-revolution-us/)