Regulators Open Door to Spot Crypto Trading on Major Exchanges

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have issued a joint staff statement signaling a shift in regulatory approach toward crypto asset markets. The statement clarifies that registered exchanges are not prohibited from facilitating trading in certain spot crypto asset products, a move seen as a step toward legitimizing digital assets within existing regulatory frameworks. The SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing and Risk emphasized that this initiative aligns with broader goals of fostering innovation, supporting competition, and promoting venue choice for market participants [1].

This development follows the recommendations of the President’s Working Group on Digital Asset Markets in its report titled “Strengthening American Leadership in Digital Financial Technology,” which called for regulatory clarity in digital asset markets. The joint effort—part of the SEC’s “Project Crypto” and the CFTC’s “Crypto Sprint”—represents a coordinated regulatory approach to accommodate crypto trading on registered platforms. SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham both highlighted the importance of empowering American innovation in the crypto space and supporting the nation’s position as a global leader in digital financial technology [2].

The joint statement does not constitute new rules or legal exemptions; instead, it reflects the staff-level views of the two agencies. It reaffirms that exchanges registered with the SEC or CFTC are permitted to trade spot crypto products that fall under current legal definitions, such as leveraged or margined retail commodity transactions. However, any new trading activity must still comply with existing regulatory requirements, including the filing of rule changes or obtaining necessary approvals. The agencies are encouraging market participants to engage with their staff to discuss the details of implementing such trading mechanisms [3].

Market observers have noted that the joint statement is likely to encourage major U.S. exchanges to begin listing digital asset products in the near future. The regulatory clarity provided by the statement could lead to increased trading volumes and broader participation in crypto markets, especially for major crypto commodities like Bitcoin. The CFTC, for example, recently solicited public input on how to facilitate the listing of spot crypto contracts on futures exchanges, a move that could inform future rule changes or approvals [3].

Key focus areas for the regulatory approach include secure custody and clearing arrangements, robust market surveillance, transparent trade reporting, and measures to ensure fair and orderly trading. The agencies emphasized that innovation in trading frameworks will be supported so long as core investor protections are in place. This shift in tone from the previous administration has been welcomed by the crypto industry, which has long sought tailored regulations rather than broad enforcement actions [3].

The collaborative stance between the SEC and CFTC is also evident in their responses to industry developments. For example, the two agencies have dropped multiple lawsuits against prominent crypto organizations and signaled a willingness to work with industry stakeholders. Acting CFTC Chairman Pham highlighted the joint statement as a demonstration of their commitment to supporting growth in crypto markets and reiterated that more developments are expected as part of the ongoing regulatory evolution [2].

Source: [1] SEC and CFTC Staff Issue Joint Statement on Trading ... (https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products) [2] SEC, CFTC-Registered Exchanges Receive Blessing to ... (https://finance.yahoo.com/news/sec-cftc-registered-exchanges-receive-021533241.html) [3] SEC and CFTC Staff Clear Path for Spot Crypto Trading on ... (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)