- On September 2, 2025, the U.S. Securities and Exchange Commission (SEC) Division of Trading and Markets and the U.S. Commodity Futures Trading Commission (CFTC) Division of Market Oversight and Division of Clearing and Risk (collectively, the “Divisions”) issued a joint statement announcing a cross-agency initiative to coordinate efforts regarding the process for enabling the trading of certain spot crypto asset products.
- Subsequently, on September 5, 2025, SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham issued a joint statement announcing a joint SEC-CFTC roundtable on regulatory harmonization covering 24/7 markets, event contracts, perpetual contracts, portfolio margining, innovation exemptions, and decentralized finance (DeFi).
- Both joint statements state the Divisions’ willingness to meet and work with market participants to address questions regarding the application of current laws as well as questions on the submission of registrations, proposals, and requests for appropriate relief, including “innovation exemptions” to create safe harbors or exemptions that allow market participants to undertake crypto trading activities.
Joint Statement on Spot Crypto Asset Products and Trading
On September 2, 2025, the Divisions issued a joint statement announcing a cross-agency initiative to coordinate efforts regarding the process for enabling the trading of certain spot crypto asset products. This initiative is in furtherance of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, aligning with recommendations from the White House Crypto Report[1] to promote regulatory clarity and innovation in blockchain technology within the United States.
This joint statement sets out the Divisions’ view that current law does not prohibit CFTC registered designated contract markets (DCMs) and foreign boards of trade (FBOTs) or SEC registered national security exchanges (NSEs) from facilitating trading of certain spot crypto asset products.
The joint statement also sets out the Divisions’ view regarding the following considerations for market participants seeking to operate crypto markets and trade in spot crypto asset products, as well as the SEC’s and the CFTC’s willingness to consider any questions on these considerations:
- Margin, Clearing, and Settlement. Applicable rules permit clearinghouses to partner with a custodian to maintain customer accounts.
- Monitoring of Underlying Markets. Sharing of reference pricing venues by NSEs, DCMs, and FBOTs enhances effective market surveillance.
- Public Dissemination of Trade Data. Public dissemination of transactions by NSEs and DCMs provides the public with valuable data.
- Promoting Fair and Orderly Markets. Efficient executions and transparency promote trading opportunities and competition among market participants.
The joint statement notes that the Divisions are ready to assist with any questions regarding the above considerations and requests that market participants engage with SEC staff or CFTC staff, as needed.
Joint Statement on Regulatory Harmonization and Joint Roundtable
On September 5, 2025, SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham issued a joint statement emphasizing the importance of greater harmonization of SEC and CFTC regulatory frameworks and announcing a joint SEC-CFTC roundtable on regulatory harmonization, to be held on September 29, 2025.
The joint statement lists the following discussion topics to be prioritized at the joint roundtable:
- 24/7 Markets. The SEC and CFTC may consider the possibility of further expanding trading hours, noting that expanding trading hours may be more viable in some asset classes than others.
- Event Contracts. The SEC and CFTC may consider where event contracts can be made available to U.S. market participants, regardless of jurisdictional considerations.
- Perpetual Contracts. The SEC and CFTC may consider concurrent steps to onshore perpetual contracts (i.e., derivatives without a defined expiry date) that meet investor and customer-protection standards, potentially allowing these products to trade on SEC and CFTC regulated platforms.
- Portfolio Margining. The SEC and CFTC may consider harmonizing margin requirements to allow broker-dealers, futures commission merchants, and clearing members to net offsetting positions across product classes. The SEC and CFTC may also consider allowing clearinghouses to offer portfolio-based margin across their respective regulated products with the aim of avoiding duplicative registration requirements or conflicting compliance obligations.
- Innovation Exemptions and Decentralized Finance. The SEC and CFTC are prepared to consider “innovation exemptions” to create safe harbors or exemptions that allow market participants to engage in peer-to-peer trading of spot, leveraged, margined, or other transactions in spot crypto assets over DeFi protocols (including, for example, perpetual contracts).
Looking Ahead
These joint statements reaffirm the SEC’s and CFTC’s ongoing efforts to address the regulatory considerations affecting crypto assets. Further guidance and rulemaking are anticipated, and firms should continue to monitor developments from the SEC and CFTC.
For further discussions on recent SEC and CFTC developments, read our previously published client alerts.[2]
[1] See Client Alert: Key Takeaways from the White House Crypto Report (August 6, 2025), available at https://www.mofo.com/resources/insights/250806-key-takeaways-from-the-white-house-crypto-report.
[2] See Client Alert: Highlights of Recent CFTC Developments (August 19, 2025), available at https://www.mofo.com/resources/insights/250819-highlights-of-recent-cftc-developments; Client Alert: Key Takeaways from the White House Crypto Report (August 6, 2025), available at https://www.mofo.com/resources/insights/250806-key-takeaways-from-the-white-house-crypto-report; Client Alert: The GENIUS Act: A New Federal Regulatory Framework for Payment Stablecoins (July 21, 2025), available at https://www.mofo.com/resources/insights/250721-the-genius-act-a-new-federal-regulatory; Client Alert: CFTC Staff Issue Interpretive Letter on Cross-Border Definitions (May 25, 2025), available at https://www.mofo.com/resources/insights/250529-cftc-staff-issue-interpretive-guidance.
