Regulators Signal All-Clear for Crypto Trading, Back U.S. Market Leadership

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly signaled regulatory openness to facilitate the trading of certain spot crypto asset products on registered exchanges. In a coordinated effort under the SEC’s Project Crypto and the CFTC’s Crypto Sprint, the two agencies’ staff issued a statement clarifying that registered exchanges are not prohibited from offering these products. This marks a significant shift from prior regulatory ambiguity and aligns with the broader objective of positioning the U.S. as a global hub for crypto innovation.

The joint statement, led by the SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing and Risk, emphasizes that the current legal framework does not bar exchanges from facilitating spot crypto asset trading. It also outlines a supportive stance toward innovations in blockchain technology and digital asset markets, as recommended in the President’s Working Group on Digital Asset Markets report [2]. This effort aims to enhance trading venue choice and optionality for market participants while reinforcing investor protections.

The statement also underscores the readiness of both agencies to engage with market participants on the practical implementation of such trading. For instance, it notes that clearinghouses can partner with custodians to manage customer accounts and that public dissemination of trade data from exchanges could provide valuable transparency. The Divisions further indicate that they will promptly review filings or requests from exchanges seeking to list spot crypto asset products, ensuring that the regulatory process remains accessible and responsive [1].

The move has been described as a pivotal step in restoring American leadership in digital asset markets. SEC Chairman Paul Atkins emphasized the importance of allowing market participants the freedom to choose where they trade, while CFTC Acting Chairman Caroline Pham highlighted the collaborative nature of the effort and its alignment with the administration’s broader goals. The joint statement does not specify particular cryptocurrencies, instead referring to “certain spot crypto asset products,” leaving room for future definitions and classifications.

As the SEC and CFTC move forward with this initiative, they are also preparing to address any questions related to margin and settlement processes, surveillance of underlying markets, and the promotion of fair and orderly trading environments. The agencies are also open to addressing concerns surrounding commercial relationships between derivatives clearing organizations and national securities exchanges, as these will be critical in enabling seamless trading operations [1].

This regulatory shift comes as Congress works on broader legislation to define the legal and operational framework for the crypto industry. While the outcome and timeline of this legislative process remain uncertain, the SEC and CFTC have taken a proactive stance in using existing authorities to streamline the integration of crypto assets into the U.S. financial system. The joint effort represents a unified front between the two regulators, signaling a more accommodating approach to the crypto market’s growth and development.

Source:

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

[2] President’s Working Group on Digital Asset Markets, Strengthening American Leadership in Digital Financial Technology (July 30, 2025) (https://whitehouse.gov/wp-content/uploads/2025/07/Digital-Assets-Report-EO14178.pdf)

[3] U.S. SEC, CFTC Combine Forces to Clear Registered Firms Trading of Spot Crypto (https://www.coindesk.com/policy/2025/09/02/u-s-sec-cftc-combine-forces-to-clear-registered-firms-trading-of-spot-crypto)