Regulators Sprint to Build a Unified Crypto Framework for the Future

U.S. regulators are accelerating efforts to bring crypto markets under federal oversight, with the Commodity Futures Trading Commission (CFTC) launching a second round of stakeholder engagement as part of its “crypto sprint” initiative. The CFTC, under Acting Chairman Caroline D. Pham, is implementing recommendations from the President’s Working Group on Digital Asset Markets. This effort aligns with broader executive branch goals to position the U.S. as a leader in digital financial technology. The CFTC has invited public feedback by October 20, 2025, on how to better regulate spot crypto trading and address issues related to leveraged, margined, or financed retail trading on CFTC-registered exchanges [1].

The CFTC’s initiative includes expanding oversight to custody arrangements, consumer protections, and operational standards for crypto markets. Acting Chairman Pham emphasized that the “Administration has made it clear that enabling immediate trading of digital assets at the Federal level is a top priority.” The CFTC is collaborating with the Securities and Exchange Commission (SEC) as part of a coordinated effort to establish a federal-level regulatory framework. The President’s Working Group on Digital Asset Markets has provided 18 specific recommendations for the CFTC, two of which are direct mandates for the agency [2].

The Trump administration has also seen rapid regulatory shifts at the SEC, where Chairman Atkins announced Project Crypto, an agency-wide effort to modernize securities regulations for digital assets. The initiative aims to establish clear rules for crypto asset distributions, custody, and trading, with a focus on reducing regulatory uncertainty. The SEC has already withdrawn several onerous accounting rules and enforcement actions from the prior administration, signaling a shift toward a more pro-innovation stance [3].

The CFTC’s “crypto sprint” is part of a four-phase strategy, with the latest phase addressing broader rulemaking and stakeholder input. Observers note that the U.S. is moving from an enforcement-driven approach to a more enabling framework, which could influence global standards in crypto markets. Andrew Rossow, a public affairs attorney, stated that the CFTC is “trying to lay a regulatory bedrock” to address state-by-state fragmentation and create a more cohesive national market [3].

With the CFTC currently operating with only two commissioners, there are growing calls for the swift confirmation of Trump’s nominee for CFTC chair, Brian Quintenz. Advocacy groups have highlighted the need for a permanent chair to ensure regulatory continuity and meet the ambitious goals outlined in the working group’s report. The agency is also coordinating with the Treasury and other agencies to streamline regulatory clarity across the digital asset sector [2].

Looking ahead, both the SEC and CFTC are expected to prioritize formal rulemaking in the coming months. In parallel, Congress has passed the GENIUS Act, the first crypto-specific federal legislation, which establishes a framework for payment stablecoin activities. Legislative efforts such as the CLARITY Act and the Responsible Financial Innovation Act are also progressing, aiming to define regulatory jurisdiction between the SEC and CFTC and create a licensing system for crypto intermediaries [4].

These developments signal a broader shift in U.S. policy toward embracing digital assets as part of the traditional financial system. While short-term guidance and no-action relief provide immediate clarity, the long-term regulatory landscape will depend on durable legislation and coordinated agency rulemaking. As the regulatory framework evolves, market participants are expected to benefit from increased clarity and protections, though implementation will require extensive stakeholder engagement and regulatory alignment [4].

Source:

[1] Acting Chairman Pham Announces Next Crypto Sprint (https://www.cftc.gov/PressRoom/PressReleases/9109-25)

[2] CFTC launches second "Crypto Sprint" to advance White (https://cointelegraph.com/news/cftc-launches-second-crypto-sprint-initiative-under-white-house-suggestions)

[3] CFTC Opens Next Phase of Crypto Sprint, Seeks Public (https://decrypt.co/336357/cftc-opens-next-phase-crypto-sprint-seeks-public-input-broader-rules)

[4] Crypto's integration into the traditional financial system is (https://www.davispolk.com/insights/client-update/cryptos-integration-traditional-financial-system-underway)