Regulators Unite to Redefine U.S. Crypto Leadership with Unified Framework

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have initiated a new phase of regulatory collaboration, emphasizing harmonization of frameworks to foster innovation and market competition in digital asset markets. On September 29, 2025, the two agencies will host a joint roundtable aimed at addressing key areas such as 24/7 trading, perpetual contracts, and portfolio margining, with the objective of aligning their regulatory approaches to support U.S. market leadership in the digital financial sector. This effort builds upon a joint staff statement issued on September 2, 2025, clarifying that registered exchanges are not prohibited from facilitating trading of certain spot crypto asset products.

The joint initiatives reflect a strategic shift under the Trump administration to unify regulatory oversight and avoid regulatory gaps that have historically impeded innovation in crypto markets. SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham emphasized that the previous era of fragmented oversight, where regulatory uncertainty stifled market development, is being replaced by a cooperative approach. This collaboration aligns with the recommendations of the President’s Working Group on Digital Asset Markets report, which advocates for a regulatory environment that retains U.S. blockchain innovation within its borders. The agencies have confirmed their willingness to streamline definitions, reporting standards, and margin frameworks, all while leveraging their respective exemptive authorities to create innovation-friendly exemptions for market participants [1].

A key focus area outlined in the joint statement is the potential expansion of trading hours to support 24/7 markets. Regulators acknowledged the global nature of on-chain finance and the necessity for U.S. markets to adapt to align with international standards. While not all asset classes may be suited for round-the-clock trading, the agencies highlighted the importance of operational feasibility, liquidity, and investor protections in any such decision. The joint statement also addressed the regulatory challenges surrounding perpetual contracts—derivatives without defined expiry dates—which are prevalent in offshore crypto markets but face jurisdictional and definitional barriers in the United States. The agencies indicated a willingness to consider steps that would allow these products to trade within the U.S. under appropriate investor protection measures [2].

Portfolio margining is another critical area for collaboration. The agencies noted that current margin requirements often force market participants to post separate collateral for positions across SEC- and CFTC-regulated entities, even when these positions hedge each other economically. By harmonizing margin frameworks, the agencies aim to reduce capital inefficiencies and improve market resiliency. The joint statement suggested that coordinated actions could allow clearinghouses to offer portfolio-based margining across product lines, reducing capital lock-up while maintaining robust risk controls. This approach could catalyze liquidity, tighten spreads, and reduce barriers to participation for both institutional and retail investors [2].

The agencies also emphasized the importance of decentralized finance (DeFi) and the need for regulatory clarity to support peer-to-peer trading of crypto assets. They affirmed a readiness to consider “innovation exemptions” that would provide safe harbors for market participants engaging in spot and derivative trading via DeFi protocols. These measures aim to foster commercial viability while advancing longer-term rulemaking efforts. Additionally, the agencies reiterated that the right to self-custody assets remains a core American value, and they encourage market participants to engage with agency staff as they explore onshoring trading activity and innovating within DeFi ecosystems [7].

The joint roundtable will serve as a pivotal platform for discussing these and other regulatory harmonization priorities. It will be held at the SEC headquarters in Washington, D.C., and will be open to the public and webcast live. The event is intended to facilitate dialogue among market participants, regulators, and industry experts on how to reduce unnecessary barriers and enhance market efficiency. The agencies have stressed that the ultimate goal is to ensure the United States remains the global leader in capital markets by creating a coherent, competitive, and innovation-friendly regulatory landscape [8].

Source: [1] title1 (https://www.sec.gov/newsroom/press-releases/2025-110-sec-cftc-staff-issue-joint-statement-trading-certain-spot-crypto-asset-products) [2] title2 (https://www.sec.gov/newsroom/speeches-statements/sec-cftc-project-crypto-090225) [3] title3 (https://www.ledgerinsights.com/sec-cftc-unveil-digital-asset-collab-to-explore-offsetting-collateral-for-spot-derivatives/) [4] title4 (https://cointelegraph.com/news/sec-cftc-statement-24-7-capital-markets) [5] title5 (https://www.fow.com/insights/cftc-sec-to-collaborate-on-24-7-trading-events-contracts-cross-margining) [6] title6 (https://www.coindesk.com/policy/2025/09/05/sec-cftc-chiefs-say-crypto-turf-wars-over-as-agencies-move-ahead-on-joint-work) [7] title7 (https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525) [8] title8 (https://www.cftc.gov/PressRoom/PressReleases/9115-25) [9] title9 (https://www.pymnts.com/news/regulation/2025/sec-and-cftc-aim-to-enhance-market-efficiency-by-harmonizing-regulations/)