Regulators Seek Global Crypto Alignment to Spark U.S. Innovation

The U.S. Commodity Futures Trading Commission (CFTC) is considering integrating compliant overseas cryptocurrency exchanges under its cross-border regulatory framework, as outlined in recent remarks by Acting Chairman Caroline D. Pham. During a speech before the UK All-Party Parliamentary Group on Blockchain Technologies, Pham stated that the CFTC is actively exploring whether trading platforms authorized under the EU’s Markets in Crypto-Assets Regulation (MiCA) or similar international regimes could qualify under the U.S. regulatory system. This initiative is part of a broader effort to reduce market fragmentation and encourage innovation within the U.S. digital asset space.

Pham emphasized that many U.S. firms had previously relocated operations to jurisdictions with clearer regulatory environments due to the enforcement-first approach of the past several years. These firms have established trading venues in regions such as the EU under frameworks like the Markets in Financial Instruments Directive (MiFID) or are preparing for MiCA compliance. The CFTC’s cross-border recognition rules, which date back to the 1990s, could now be used to streamline onshore trading activity for compliant overseas platforms, enabling them to serve U.S. participants under CFTC oversight.

The CFTC has already reaffirmed its long-standing Foreign Board of Trade (FBOT) framework, which allows non-U.S. exchanges regulated under comparable international regimes to register with the CFTC and offer direct trading access to U.S. market participants. Acting Chair Pham highlighted that aligning with regimes like MiCA—already covering critical areas such as capital, custody, transparency, and retail protection—could help prevent further market fragmentation.

In parallel, the CFTC has launched its “Crypto Sprint,” a public consultation initiative seeking input on listed spot crypto trading and other recommendations from the Trump Administration’s digital asset roadmap. Public comments are due by October 20. This roadmap, published by the President’s Working Group on Digital Asset Markets, aims to position the U.S. as a global leader in digital asset innovation while modernizing regulatory frameworks to accommodate evolving technologies.

The CFTC is also working closely with the Securities and Exchange Commission (SEC) to harmonize regulatory approaches. The two agencies have initiated joint efforts, including a planned roundtable on September 29 to discuss harmonizing product definitions, data standards, and innovation exemptions. Pham noted that the U.S. must avoid repeating past mistakes, such as those seen with the Dodd-Frank Act, which led to regulatory complexity and market fragmentation. Instead, she advocated for technology-neutral and activity-based regulations that foster innovation while maintaining investor protections.

U.S. market regulators have signaled openness to crypto trading, with major exchanges such as NYSE, Nasdaq, and CME reportedly preparing to offer spot trading for cryptocurrencies like Bitcoin and Ethereum. In a joint statement, the SEC and CFTC encouraged platforms to engage with them to clarify their regulatory obligations, indicating a willingness to operate within existing frameworks rather than waiting for new legislation.