Regulators Sprint to Define Crypto's Future Amid Leadership Vacuum

The Commodity Futures Trading Commission (CFTC) has intensified its focus on cryptocurrency regulation by launching a second "crypto sprint" initiative aimed at implementing the recommendations from the President’s Working Group on Digital Asset Markets. Acting Chair Caroline D. Pham announced the move, emphasizing the administration’s commitment to enhancing U.S. leadership in the digital asset space. The initiative follows a 166-page report from the Working Group, which outlined policy measures to streamline the regulatory framework for crypto trading at the federal level [1].

A key objective of the crypto sprint is to engage stakeholders in shaping the CFTC's approach to regulating spot crypto trading on registered exchanges. Pham highlighted the importance of public feedback in addressing issues related to leveraged, margined, or financed retail trading. The CFTC is accepting written input from interested parties until October 20, 2025, with submissions to be published on the CFTC website. The regulator is coordinating with the Securities and Exchange Commission’s Project Crypto to ensure a cohesive regulatory approach [2].

Among the 18 recommendations issued by the President’s Working Group, two are directly relevant to the CFTC. The first calls for the agency to provide guidance on the classification of cryptocurrencies as commodities and the regulatory compliance of decentralized finance (DeFi) firms. The second asks the CFTC to evaluate how its rules can accommodate blockchain-based derivatives. Both recommendations are expected to shape the CFTC’s regulatory posture as it aims to foster innovation while safeguarding market integrity [1].

The CFTC’s current leadership structure remains in flux, with Acting Chair Pham overseeing operations alongside Commissioner Kristin N. Johnson. The nomination of Brian Quintenz, the President’s nominee for CFTC Chair, has been delayed, prompting advocacy groups to urge the Senate to expedite the confirmation process. These groups argue that a permanent chair is essential to advance the CFTC’s broader objectives in the digital asset market [2].

Industry observers have noted that the CFTC’s initiatives are part of a broader strategy by the Trump administration to position the U.S. as a global leader in crypto innovation. Pham described the current moment as a "Golden Age of innovation," urging market participants to actively contribute to the development of a robust regulatory framework. The agency’s actions are also seen as a response to growing demand for clarity and standardization in the rapidly evolving crypto market [1].

The Working Group’s report also recommended that the CFTC collaborate with other federal agencies, including the Treasury and SEC, to harmonize regulatory approaches. This cross-agency coordination is expected to streamline the development of rules governing digital asset trading and ensure consistent oversight across different market segments. The CFTC’s first crypto sprint, launched in early July, focused on exploring the feasibility of spot crypto trading on registered futures exchanges [2].

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)