Regulators Unlock Clear Path for U.S. Crypto Trading Innovation

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly signaled regulatory clarity for the trading of spot crypto asset products on registered exchanges, marking a pivotal development in the U.S. digital asset market. According to a joint staff statement, the two agencies’ divisions are coordinating efforts under the SEC’s Project Crypto and the CFTC’s Crypto Sprint to enable registered exchanges to facilitate the trading of certain spot crypto assets. This move aligns with the recommendations of the President’s Working Group on Digital Asset Markets report, which advocates for regulatory clarity to foster blockchain innovation within the United States [1].

The joint initiative clarifies that the Commodity Exchange Act does not prohibit registered exchanges from listing leveraged, margined, or financed spot retail commodity transactions involving digital assets. This includes SEC-registered national securities exchanges (NSEs), CFTC-registered designated contract markets (DCMs), and foreign boards of trade (FBOTs). The statement emphasizes that these entities are free to facilitate trading in certain spot crypto asset products, provided they comply with existing regulatory frameworks [2].

Market participants are now encouraged to engage with SEC or CFTC staff to address questions related to margining, clearing, and settlement mechanisms. The statement notes that clearinghouses can partner with custodians to manage customer accounts, and both the SEC and CFTC divisions are prepared to provide guidance on regulatory issues such as cross-market surveillance and public dissemination of trade data. These considerations are intended to support transparency and investor protections while enabling innovation in the sector [3].

The CFTC also announced new guidance on Aug. 28 regarding foreign boards of trade, which provides a legal pathway for non-U.S. exchanges to offer direct market access to American traders. This framework applies to all asset classes, including digital assets, and clarifies that foreign exchanges can register under the CFTC’s Foreign Board of Trade (FBOT) system rather than as DCMs. The advisory is part of the CFTC’s broader efforts to modernize outdated regulatory structures and promote fair competition among trading venues [4].

Acting CFTC Chair Caroline Pham emphasized that the guidance aims to restore trading activity that had migrated overseas due to previous enforcement-heavy regulatory approaches. This shift is intended to provide U.S. traders with more access to international liquidity and a broader range of products, while ensuring that these activities remain within a regulated framework. The CFTC’s advisory reaffirms existing regulations rather than introducing new ones, reducing uncertainty for market participants [5].

SEC Chairman Paul Atkins underscored the importance of fostering innovation and competition in crypto markets, stating that the joint effort represents a significant step toward making the U.S. a global leader in digital assets. The CFTC has similarly highlighted the initiative as part of its “crypto sprint” under the Trump administration, aimed at modernizing outdated frameworks and encouraging global platforms to re-engage with U.S. markets [6].

The coordinated regulatory approach between the SEC and CFTC is expected to facilitate greater participation in spot crypto trading by both domestic and international market participants. This development aligns with the administration’s broader strategy to position the U.S. as a hub for blockchain technology and digital asset innovation, while maintaining safeguards for investors and market integrity.

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

[4] CFTC to Allow US Citizens to Trade on Binance, Other... (https://finance.yahoo.com/news/cftc-allow-us-citizens-trade-174219319.html)

[5] CFTC clears path for Americans to trade on non-U.S.... (https://crypto.news/cftc-americans-trade-non-u-s-exchanges-2025/)

[6] CFTC Issues New Guidance on Foreign Exchange Access... (https://cryptodnes.bg/en/cftc-issues-new-guidance-on-foreign-exchange-access-for-us-traders/)