Regulators Open Door to Spot Crypto Trading on Major Exchanges

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have taken a significant step toward regulating the U.S. crypto market by jointly affirming that registered exchanges are not prohibited from facilitating the trading of certain spot crypto asset products. The joint statement, issued by staff from the SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing and Risk, marks a shift in the regulatory approach toward digital assets. It aligns with the broader objectives of the SEC’s “Project Crypto” and the CFTC’s “Crypto Sprint,” both aimed at fostering innovation while ensuring investor protections and market integrity.

The statement clarifies that SEC-registered national securities exchanges and CFTC-registered designated contract markets (DCMs) can legally facilitate spot trading in crypto commodities. This development follows the President’s Working Group on Digital Asset Markets’ report, which recommended that the U.S. strengthen its leadership in blockchain innovation. SEC Chairman Paul Atkins emphasized that the move supports market participants’ ability to choose where to trade digital assets, reinforcing the commission’s commitment to a regulatory framework that accommodates innovation and competition. CFTC Acting Chairman Caroline D. Pham echoed these sentiments, stating that the joint effort demonstrates a unified approach to supporting the growth of crypto markets in the U.S.

The joint guidance does not introduce new rules or legal exemptions but reflects the current legal interpretation that such trading is permissible under existing law. However, exchanges seeking to list spot crypto products must still comply with applicable regulatory processes, including filing rule changes or seeking relief where necessary. The Divisions have pledged to expedite the review of proposals and engage with market participants to address any questions. This proactive approach aims to reduce the ambiguity that has long hindered the development of the U.S. crypto market and encourages institutional and retail investors to participate in regulated venues.

Regulators also emphasized the importance of maintaining market integrity and investor protections. Key considerations include secure custody and clearing arrangements, such as partnerships between clearinghouses and qualified custodians, robust market surveillance, transparent dissemination of trade data, and fair and orderly trading practices. The statement reflects a balanced approach that supports technological innovation while ensuring that core safeguards are maintained. For example, the CFTC’s Division of Clearing and Risk is prepared to address questions related to the operational relationships between derivatives clearing organizations (DCOs) and national securities exchanges (NSEs).

Industry participants have welcomed the development, with some noting that it could pave the way for major U.S. exchanges like the New York Stock Exchange and Nasdaq to list spot crypto products such as Bitcoin and Ethereum. This shift is expected to increase mainstream adoption and provide greater access to digital assets within traditional financial markets. The move aligns with the Trump administration’s broader efforts to position the U.S. as a global hub for cryptocurrency innovation. As the regulatory landscape continues to evolve, market participants are encouraged to engage with the SEC and CFTC to shape the development of a framework that balances innovation with investor protection.

Source:

[1] SEC and CFTC Staff Issue Joint Statement on Trading Certain Spot Crypto Asset Products (https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products)

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

[3] 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)

[4] SEC and CFTC clear path for US exchanges to trade spot crypto (https://blockchaintechnology-news.com/news/sec-and-cftc-clear-path-for-us-exchanges-to-trade-spot-crypto/)