SEC and CFTC Unite to Fuel U.S. Crypto Innovation and Clarity

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced plans to host a joint roundtable on September 29, 2025, aimed at fostering regulatory clarity and promoting innovation in the cryptocurrency sector. This initiative builds on a recent joint staff statement that outlined collaborative efforts to harmonize the regulatory frameworks of the two agencies. The roundtable is part of broader initiatives—Project Crypto by the SEC and the CFTC’s Crypto Sprint—designed to align oversight and reduce regulatory uncertainty.

The joint statement from SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham emphasized the importance of regulatory coordination in enabling the development of innovative financial products. The agencies identified several key areas for discussion, including the expansion of 24/7 trading hours, the introduction of event contracts for prediction markets, and the onshoring of perpetual contracts—derivatives without a defined expiry date—which are more commonly traded in offshore markets. Additionally, the agencies aim to streamline reporting and data standards and consider a coordinated approach to portfolio margining, which could reduce capital inefficiencies for market participants.

The joint staff statement on spot crypto asset products, issued earlier in September, clarified that current U.S. law does not prohibit registered exchanges from listing and trading certain spot crypto assets. This marks a shift from previous regulatory ambiguity and signals a more supportive stance toward innovation in the crypto space. The agencies explicitly invited market participants to engage with their staff to discuss applications and compliance concerns. The initiative is also seen as a step toward reversing the trend of crypto innovation being driven overseas due to fragmented oversight.

Innovation exemptions and decentralized finance (DeFi) were also highlighted as focal points for the roundtable. The agencies expressed openness to considering regulatory safe harbors that could allow peer-to-peer trading of crypto assets via DeFi protocols. This approach seeks to enable market participants to experiment with new models while the agencies work on longer-term rulemaking. The emphasis on self-custody rights and the potential for harmonized exemptions across product classes reflects a broader goal of fostering a competitive and resilient U.S. financial ecosystem.

The roundtable is expected to include public participation and will be webcast live on the SEC’s website. While the full agenda and participants have not yet been finalized, the event aligns with the recommendations of the President’s Working Group on Digital Asset Markets report, which called for enhanced coordination between the SEC and CFTC. The agencies aim to create a regulatory environment that supports American businesses, encourages innovation, and ensures investor protection while maintaining robust risk controls.

This coordinated effort is viewed as a critical step in strengthening U.S. leadership in digital financial technology and ensuring that the next wave of financial innovation is developed and regulated domestically. By addressing jurisdictional gaps and streamlining regulatory approaches, the SEC and CFTC seek to create a more predictable and efficient market structure that supports both institutional and retail participation.

Source:

[1] Joint Statement from the Chairman of the SEC and Acting ... (https://www.sec.gov/newsroom/speeches-statements/joint-statement-atkins-pham-090525)

[2] SEC, CFTC seek to 'harmonize' on DeFi, perps contracts ... (https://www.theblock.co/post/369625/sec-cftc-seek-to-harmonize-on-defi-perps-contracts-and-more-plan-roundtable-later-this-month)

[3] SEC and CFTC to coordinate crypto efforts (https://blockworks.co/news/sec-cftc-crypto-coordination)

[4] SEC and CFTC clear the way for spot crypto trading on ... (https://cryptovalleyjournal.com/focus/legal-and-compliance/sec-and-cftc-clear-the-way-for-spot-crypto-trading-on-regulated-us-exchanges/)