SEC and CFTC Unify to Spark US Crypto Innovation Era

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have jointly issued a staff statement outlining a coordinated effort to facilitate the trading of certain spot crypto asset products on registered exchanges. The initiative, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, aims to promote regulatory clarity and enhance innovation in the digital asset space by aligning their regulatory approaches [1]. The joint statement clarifies that SEC- and CFTC-registered exchanges are not prohibited from facilitating the trading of these products under current laws, and it encourages greater participation by market participants within the U.S. framework [2].

The announcement follows the recommendations of the President’s Working Group on Digital Asset Markets, which called for the SEC and CFTC to collaborate in order to position the U.S. as a global hub for blockchain innovation [1]. According to the joint staff statement, the Divisions of Trading and Markets (SEC) and Market Oversight and Clearing and Risk (CFTC) are working together to provide guidance and regulatory support for the listing and trading of leveraged, margined, or financed spot retail commodity transactions involving digital assets [1]. This aligns with the broader goal of fostering competition, market transparency, and innovation while ensuring investor protections [2].

The joint statement also addresses several key considerations for market participants. It highlights the importance of margin, clearing, and settlement processes, affirming that clearinghouses can partner with custodians to manage customer accounts [1]. Additionally, the Divisions emphasize the benefits of shared reference pricing venues for effective market surveillance and underscore the value of public dissemination of trade data by exchanges. The statement further supports the application of fair and orderly market principles to promote competition and ensure transparent execution [1].

Market participants are encouraged to submit necessary registrations, proposals, or requests for relief to the SEC and CFTC. The staff has indicated a willingness to engage with exchanges and clearing organizations to address any regulatory questions. For example, the SEC’s Division of Trading and Markets is prepared to assist SEC-registered clearing agencies, while the CFTC’s Division of Clearing and Risk is available to support CFTC-registered derivatives clearing organizations [1]. The joint effort is intended to streamline the regulatory process and create a more predictable environment for market development.

Both the SEC and CFTC have signaled a renewed commitment to fostering innovation in digital asset markets. SEC Chairman Paul Atkins emphasized that the statement represents a “significant step forward” in bringing crypto market innovation back to the U.S., while CFTC Acting Chairman Caroline D. Pham noted that the collaborative approach marks the end of a period of regulatory uncertainty under the previous administration [2]. The joint staff statement is not a formal rule or regulation, but it reflects the current interpretations of the agencies’ staff and aims to support the broader objective of making the U.S. the leading jurisdiction for digital financial technology [1].

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)