SEC and CFTC Forge Unified Crypto Oversight to Empower U.S. Innovation

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have taken a coordinated step toward unifying regulatory oversight of digital assets, with SEC Chair Paul Atkins emphasizing the need for a cohesive framework to foster innovation while ensuring investor protections. On September 2, 2025, staff from both agencies issued a joint statement clarifying that registered exchanges are not prohibited from facilitating the trading of certain spot crypto asset products, including leveraged, margined, or financed transactionsSEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products^[1]. This initiative, part of the SEC’s Project Crypto and CFTC’s Crypto Sprint, aligns with recommendations from the President’s Working Group on Digital Asset Markets report, which aims to strengthen U.S. leadership in blockchain technologySEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint)^[2].

Atkins highlighted the joint effort as a “significant step forward” in bringing crypto innovation back to the U.S., stressing that market participants should have the freedom to choose trading venuesSEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products^[1]. He reiterated the SEC’s commitment to collaborating with the CFTC to ensure regulatory frameworks support innovation and competition in rapidly evolving markets. CFTC Acting Chair Caroline D. Pham echoed this sentiment, stating that the agencies’ coordinated approach would “empower American innovation” and build on President Trump’s goal of making the U.S. the global crypto capitalSEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products^[1]. The joint statement underscores a departure from previous regulatory ambiguity under the prior administration, which Pham described as having sent “mixed signals” about compliance in digital asset marketsSEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products^[1].

The collaboration addresses key operational and regulatory considerations for market participants, including margin and settlement practices, market surveillance, and data dissemination. The agencies clarified that clearinghouses may partner with custodians to maintain customer accounts and that sharing reference pricing venues enhances market integritySEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint)^[2]. Public dissemination of trade data from exchanges is also encouraged to provide transparency, while principles of fair and orderly markets are emphasized to promote competitionSEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint)^[2]. The Divisions of Trading and Markets (SEC) and Market Oversight and Clearing and Risk (CFTC) have pledged to promptly review filings from exchanges seeking to operate spot crypto asset marketsSEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint)^[2].

A broader harmonization initiative announced by the agencies on September 5, 2025, further outlines priorities for regulatory alignment. Atkins and Pham identified opportunities to expand trading hours, clarify parameters for prediction markets, and streamline portfolio margining across product classes. They also emphasized the importance of harmonizing definitions for products and venues and streamlining reporting standards. The agencies plan to host a joint roundtable on September 29, 2025, to discuss these priorities, reflecting their commitment to creating a “new era of innovation” in digital asset markets.

The Spring 2025 regulatory agendas of both agencies reinforce this focus. The SEC’s agenda includes rulemakings related to digital asset custody, trading on alternative platforms, and modernizing transfer agent rules. The CFTC’s agenda, while less crypto-focused, includes a reopening of comments on the regulatory treatment of event contracts and a prioritization of cost-efficient rulemaking. These steps signal a shift toward a more predictable and innovation-friendly regulatory environment, aligning with the Trump administration’s broader digital asset strategy.

The joint initiatives have been welcomed by market participants as a potential catalyst for onshoring crypto trading activity, which had previously moved overseas due to regulatory uncertainty. The CFTC’s reaffirmation of its foreign board of trade (FBOT) registration framework, for instance, clarifies that non-U.S. exchanges can provide U.S. traders access to their platforms without needing to become designated contract markets. This move, along with the joint staff statements, aims to reduce barriers for exchanges seeking to operate within the U.S. regulatory system.

As the agencies continue to implement these measures, the focus remains on balancing innovation with investor protections. The joint efforts highlight a strategic shift toward collaborative oversight, with Atkins and Pham signaling a long-term commitment to refining regulatory approaches in response to the dynamic crypto landscapeSEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products^[1].