SEC and CFTC Join Forces for Integrated Crypto Regulation to Boost U.S. Innovation
- SEC and CFTC jointly clarify spot crypto trading rules to foster innovation while protecting investors. - Agencies permit exchanges to facilitate leveraged/margined crypto trades under Project Crypto and Crypto Sprint alignment. - Regulatory harmonization includes unified product definitions, streamlined reporting, and a joint roundtable on September 29. - Joint efforts aim to reduce regulatory ambiguity, support U.S. crypto leadership, and encourage onshoring trading activity.
The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have jointly advanced efforts to coordinate digital asset regulation, with SEC Chair Paul Atkins stressing the importance of a unified regulatory structure that encourages innovation while safeguarding investors. On September 2, 2025, representatives from both agencies released a joint statement clarifying that registered exchanges are permitted to support trading in certain spot crypto asset products, including those involving leverage, margin, or financing SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products [ 1 ]. This move, which is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, is consistent with recommendations from the President’s Working Group on Digital Asset Markets, aiming to bolster U.S. leadership in blockchain technology SEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint) [ 2 ].
Atkins described the collaboration as a “major advancement” in bringing crypto innovation back to the United States, emphasizing that market participants should have the autonomy to select their trading platforms SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products [ 1 ]. He reaffirmed the SEC’s dedication to working with the CFTC to ensure that regulatory frameworks foster both innovation and competition in fast-changing markets. CFTC Acting Chair Caroline D. Pham shared this perspective, noting that the agencies’ joint approach would “strengthen American innovation” and further President Trump’s vision of establishing the U.S. as a global leader in crypto SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products [ 1 ]. The joint statement marks a shift from the previous administration’s regulatory uncertainty, which Pham characterized as having created “confusion” regarding compliance in digital asset markets SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products [ 1 ].
This partnership addresses essential operational and regulatory issues for market participants, such as margin and settlement procedures, market monitoring, and data sharing. The agencies clarified that clearinghouses can collaborate with custodians to manage customer accounts, and that sharing reference price sources helps maintain market integrity SEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint) [ 2 ]. They also encourage exchanges to publicly share trade data to enhance transparency, and stress the importance of fair and orderly markets to support competition SEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint) [ 2 ]. The SEC’s Divisions of Trading and Markets and the CFTC’s Market Oversight and Clearing and Risk divisions have committed to promptly reviewing applications from exchanges that wish to operate spot crypto asset markets SEC-CFTC Joint Staff Statement (Project Crypto-Crypto Sprint) [ 2 ].
A broader harmonization plan announced by the agencies on September 5, 2025, further details their priorities for regulatory consistency. Atkins and Pham pointed to opportunities to extend trading hours, clarify rules for prediction markets, and simplify portfolio margining across different product types. They also highlighted the need to standardize definitions for products and trading venues and to streamline reporting requirements. The agencies intend to hold a joint roundtable on September 29, 2025, to discuss these initiatives, demonstrating their commitment to ushering in a “new era of innovation” in digital asset markets.
Both agencies’ Spring 2025 regulatory agendas reinforce this direction. The SEC’s agenda features proposed rules on digital asset custody, trading on alternative platforms, and updating transfer agent regulations. The CFTC’s agenda, while less focused on crypto, includes reopening public comments on the regulation of event contracts and prioritizing cost-effective rulemaking. These actions reflect a move toward a more stable and innovation-oriented regulatory climate, in line with the Trump administration’s broader digital asset policy.
Market participants have responded positively to these joint efforts, viewing them as a possible driver for bringing crypto trading activity back to the U.S., which had previously shifted abroad due to unclear regulations. For example, the CFTC’s reaffirmation of its foreign board of trade (FBOT) registration process clarifies that non-U.S. exchanges can allow American traders access to their platforms without needing to register as designated contract markets. This, along with the joint staff statements, is intended to lower obstacles for exchanges aiming to operate under U.S. regulatory oversight.
As these measures are rolled out, the agencies remain focused on striking a balance between fostering innovation and protecting investors. The joint actions reflect a strategic move toward collaborative regulation, with Atkins and Pham indicating a sustained commitment to evolving regulatory strategies in response to the rapidly changing crypto sector SEC and CFTC Staff Issue Joint Statement on Trading of Certain Spot Crypto Asset Products [ 1 ].
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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