Trump Era Crypto Push: Regulators Chart Clear Path for Spot Trading Innovation

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly issued a staff statement clarifying regulatory perspectives on the trading of certain spot crypto asset products on registered exchanges. This marks a significant development under President Donald Trump’s administration, which has prioritized positioning the U.S. as a global leader in digital asset innovation. The joint initiative, part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, aims to streamline regulatory clarity for market participants and foster innovation while maintaining investor protections [1].

The joint statement outlines the views of the SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk (collectively, the “Divisions”) that current laws do not prohibit SEC- or CFTC-registered exchanges from facilitating the trading of spot crypto assets. These include leveraged, margined, or financed retail commodity transactions. The Divisions emphasize that registered exchanges, such as SEC-registered national securities exchanges (NSEs) and CFTC-registered designated contract markets (DCMs) or foreign boards of trade (FBOTs), are not barred from facilitating these trades [1].

This regulatory clarity is intended to encourage market participants to submit necessary registrations, proposals, or requests for relief to the SEC and/or CFTC. The Divisions are prepared to support and answer questions from exchanges and clearinghouses, including collaboration between derivatives clearing organizations (DCOs) and NSEs. They also highlight the importance of reference pricing sharing among NSEs, DCMs, and FBOTs to enhance market surveillance and public dissemination of trade data to provide transparency [1].

The joint effort represents a coordinated approach between the two agencies to address longstanding regulatory ambiguities that have hindered the development of crypto markets in the U.S. SEC Chairman Paul Atkins emphasized that the initiative supports innovation and competition in digital asset markets. Acting CFTC Chair Caroline Pham added that this collaborative effort reflects the Trump administration’s commitment to making the U.S. the “crypto capital of the world” [2]. Notably, this joint statement follows the recommendations of the President’s Working Group on Digital Asset Markets, which called for regulatory clarity to preserve the U.S.’s competitive edge in blockchain innovation [1].

While the joint staff statement does not constitute legally binding rules or regulations, it signals a shift in regulatory posture toward greater accommodation of digital assets. Market participants are now invited to engage with either agency to navigate the complexities of launching spot crypto trading. The statement also underscores the importance of technological innovation in markets while ensuring adequate investor protections [1]. This approach aligns with broader efforts to modernize financial infrastructure, particularly in light of the U.S. House of Representatives passing the CLARITY Act in July, which aims to clarify jurisdictional boundaries between the SEC and CFTC in digital asset regulation [6].

The initiative is also expected to complement the ongoing development of the Digital Asset Market Clarity Act of 2025, which is currently under review in the Senate. The proposed legislation seeks to assign the CFTC primary responsibility for regulating spot digital commodities, with the SEC retaining oversight in specific contexts. As the regulatory landscape evolves, the joint staff statement provides a critical bridge between existing legal frameworks and the needs of a rapidly growing digital asset market [6].

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)