Regulators Open Door to Spot Crypto Trading on U.S. Exchanges

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have signaled a significant shift in their approach to regulating the digital asset sector, with a joint initiative that could ease restrictions on spot trading of crypto assets on regulated exchanges. On September 2, 2025, staff from both agencies issued a statement clarifying that SEC- and CFTC-registered exchanges are not prohibited from facilitating trading in certain spot crypto commodity products under current law. This joint effort, part of the SEC’s “Project Crypto” and the CFTC’s “Crypto Sprint,” aims to promote trading venue choice and foster innovation in the U.S. digital asset markets [2].

The initiative aligns with recommendations from the President’s Working Group on Digital Asset Markets, which emphasized the importance of regulatory clarity to maintain U.S. leadership in blockchain innovation. The joint statement clarifies that DCMs, FBOTs, and NSEs are not barred from listing such products and encourages market participants to engage with regulators to address questions related to compliance. This approach is intended to provide legal certainty to market participants, who have previously operated in a gray area under ambiguous regulatory frameworks. The joint statement, while non-binding and not creating new legal safe harbors, reflects staff views that existing laws permit regulated exchanges to offer trading in certain spot crypto assets [1].

SEC Chairman Paul Atkins emphasized that the statement represents a “new day” at the SEC, with a focus on creating clear rules for the issuance, custody, and trading of crypto assets. Atkins reiterated the agency’s commitment to supporting innovation while ensuring investor protection. The CFTC’s Acting Chairman, Caroline D. Pham, echoed similar sentiments, stating that the joint effort builds on President Trump’s vision to make the U.S. the “crypto capital of the world.” The initiative marks a departure from the previous administration’s inconsistent messaging on crypto regulation and underscores the collaborative intent of both agencies to streamline regulatory oversight [1].

Regulators have pledged to review proposals and filings promptly from exchanges seeking to facilitate trading in spot crypto products. The joint staff statement highlights key considerations for market participants, including secure custody arrangements, market surveillance, and transparency in trade data reporting. While emphasizing regulatory oversight, the agencies also expressed openness to technological innovations, provided that core investor protections are maintained. The CFTC, for instance, recently sought public input on how to list spot crypto contracts on futures exchanges, a move likely to inform future rule changes [2].

Looking ahead, the SEC’s agenda includes a slate of proposed rule changes to further integrate digital assets into the traditional financial system. Nearly half of the 20 rulemakings proposed by the SEC relate to crypto, including amendments to the 1934 Securities Exchange Act to enable trading on U.S. securities exchanges. The agency is also considering crypto-specific carve-outs to its broker-dealer rules and redefining the term “dealer,” potentially reshaping the regulatory landscape for digital asset market participants. These measures reflect a broader effort to bring clarity and structure to a sector that has long operated outside conventional financial frameworks [3].

Market participants are expected to engage with regulators proactively to navigate the evolving landscape. As the SEC and CFTC continue to develop their frameworks, firms are encouraged to participate in upcoming comment periods and industry dialogues to influence the shape of future regulations. With increased regulatory support and clearer guidelines, U.S. exchanges may soon begin listing major crypto commodities such as Bitcoin and Ethereum, potentially expanding the range of assets available to investors through regulated channels [2].

Source:

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

[2] SEC and CFTC Staff Clear Path for Spot Crypto Trading on Regulated Exchanges (https://www.aoshearman.com/en/insights/ao-shearman-on-fintech-and-digital-assets/sec-and-cftc-staff-clear-path-for-spot-crypto-trading-on-regulated-exchanges)

[3] SEC Goes All In on Pro-Crypto Agenda With Slew of Digital Asset Rule Proposals (https://finance.yahoo.com/news/sec-goes-pro-crypto-agenda-163750006.html)