Regulators Signal All-Clear for U.S. Spot Crypto Exchanges

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued a staff statement signaling a coordinated approach to enabling spot crypto asset trading in the United States. This move follows recommendations from the President’s Working Group on Digital Asset Markets, which emphasized the need for regulatory clarity to foster innovation and maintain American leadership in digital financial technology. The joint statement, issued by the SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk, clarifies that current law does not prohibit registered exchanges—including national securities exchanges (NSEs), designated contract markets (DCMs), and foreign boards of trade (FBOTs)—from facilitating the trading of spot crypto asset products, including those with leverage and margin features [1].

The statement underscores that the agencies are prepared to engage with market participants and support the development of exchange-based trading venues for these products. This includes reviewing filings, addressing questions on custody and clearing, and ensuring that new markets meet standards for transparency, surveillance, and investor protection [3]. The guidance also highlights the importance of collaboration between clearinghouses and custodians in maintaining customer accounts, and it invites exchanges to engage with either agency for regulatory clarity on commercial relationships and other operational concerns [1].

One of the key implications of the joint staff statement is that it removes a significant regulatory barrier for both domestic and foreign exchanges. Previously, uncertainty over the applicability of U.S. law to spot crypto trading had led several exchanges to operate outside the country. The statement now affirms that existing law does not prevent regulated exchanges from listing spot crypto products, which may encourage platforms like Coinbase and Kraken to expand their offerings on traditional exchange venues. Additionally, the CFTC’s recent guidance allows foreign crypto exchanges to serve American traders legally by registering as FBOTs, which provides a clear pathway for international platforms to access U.S. markets [4].

The joint effort between the SEC and CFTC marks a shift in regulatory posture under the Trump administration, moving away from the enforcement-driven approach of the previous administration. Acting CFTC Chair Caroline D. Pham emphasized that the guidance “opens up U.S. markets to the rest of the world” and represents a continuation of efforts to position America as the global leader in crypto innovation [4]. The initiative also builds on the CFTC’s ongoing Crypto Sprint and the SEC’s Project Crypto, both of which aim to streamline regulatory processes and promote the development of the digital asset market [2].

While the joint staff statement does not alter existing law, it sends a strong signal to the market that regulators are ready to support the establishment of robust, transparent trading venues for spot crypto assets. It also aligns with broader industry advocacy efforts, including a coalition of 115 digital asset builders, investors, and advocates who recently called on Congress to provide federal protections for blockchain developers and non-custodial service providers. The industry coalition emphasized the need for a regulatory framework that treats blockchain as infrastructure and avoids imposing traditional financial regulations on developers [5]. As the legislative process continues, the joint regulatory approach between the SEC and CFTC may serve as a foundation for further clarity and innovation in the evolving crypto market.

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 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)

[3] US Regulators Clarify Rules for Spot Crypto Trading (https://cointelegraph.com/news/us-sec-cftc-joint-guidance-spot-crypto-trading)

[4] CFTC Opens U.S. Markets to Crypto Exchanges (https://coinmarketcap.com/academy/article/cftc-opens-us-markets-to-crypto-exchanges)

[5] Crypto Brief - Fin Tech - United States (https://www.mondaq.com/unitedstates/fin-tech/1672212/crypto-brief)