On September 2, 2025, the staffs of the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) issued a joint statement regarding trading of certain spot crypto asset products on regulated exchanges. In this statement, the SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing & Risk clarify their view that current law does not prohibit SEC-registered national securities exchanges or CFTC-registered exchanges from facilitating trading in these spot crypto commodity products. This cross-agency initiative – part of the SEC’s “Project Crypto” and the CFTC’s “Crypto Sprint” – builds on a White House report urging regulators to provide clarity and keep blockchain innovation in the U.S. The joint effort is intended to promote trading venue choice for digital assets and encourage crypto market innovation within the U.S. regulatory framework, with both agencies signaling a more welcoming stance toward crypto asset markets.
Why It Matters
This development provides a long-awaited signal that regulators are open to allowing spot crypto trading within the existing regulatory perimeter, potentially enabling mainstream U.S. exchanges to list digital asset products. Clarifying that such activity is permissible under current law marks a more constructive regulatory approach after years of uncertainty. The crypto industry has long pushed for tailored rules instead of broad enforcement, and the joint statement is being received as a win for market participants that have until now operated in a legal gray area. By bringing crypto products onto regulated venues, the SEC and CFTC aim to foster innovation and competition in the sector while enhancing market integrity and investor protection.
Key Takeaways
- Staff Guidance on Legality: The agencies’ staff affirm that existing laws permit regulated exchanges to offer trading in certain spot crypto assets. In the staff’s view, SEC-registered national securities exchanges and CFTC-designated contract markets (DCMs) are not prohibited from listing spot crypto commodity products under current law (for example, leveraged or margined retail crypto transactions can occur on a registered exchange rather than only on unregulated platforms).
- No New Rule or Exemption: The joint statement is non-binding and does not create any new rule or legal safe harbor – it reflects staff views only and has no legal force. In other words, it does not alter existing laws or regulatory requirements, and any exchange seeking to list new crypto products must still follow applicable SEC/CFTC processes (such as filing rule changes or obtaining regulatory relief as needed).
- Regulatory Cooperation and Support: The SEC and CFTC are actively encouraging engagement from market participants and have pledged support for prompt review of proposals. The Divisions announced they will quickly review exchange filings or requests to list spot crypto products and “stand ready to engage” with firms on any questions. This coordinated approach is designed to expand venue options for crypto trading while maintaining robust oversight.
- Market Integrity Emphasized: Regulators underscored that any new spot crypto markets must uphold investor protections and market integrity. Key focus areas include secure custody and clearing arrangements (e.g., allowing clearinghouses to partner with qualified custodians), robust market surveillance and information-sharing among trading venues, transparent public reporting of trade data, and measures to ensure fair and orderly trading. The agencies signaled openness to innovative trading frameworks so long as these core safeguards are in place, indicating that technological innovation will be welcomed in a regulated environment that protects customers.
Looking Ahead
Exchanges and platforms interested in offering spot crypto products should engage early with regulators. The joint staff statement explicitly invites market participants to consult with the SEC and CFTC staffs on proposals, and both agencies have opened lines of communication for this initiative. We expect U.S. exchanges to now explore listings of spot digital asset products (e.g. major crypto commodities like Bitcoin) in the coming months, and industry observers anticipate that a broader range of crypto assets beyond just Bitcoin and Ether could gradually become available on U.S. regulated venues as a result.
The CFTC, for example, recently solicited public input on how to list spot crypto contracts on futures exchanges – a step likely to inform further rule changes or approvals.
Further guidance and rulemaking are anticipated: as the SEC’s Project Crypto and the CFTC’s crypto sprint continues, both regulators are expected to flesh out the framework for compliant spot crypto trading (potentially through formal proposals or additional staff guidance). Market participants should stay involved in these developments – by participating in upcoming comment opportunities and industry dialogues – to help shape a regulatory environment that balances innovation with investor protection. By proactively engaging with the SEC and CFTC, firms can navigate the path forward and prepare to take advantage of new opportunities in the digital asset market as oversight evolves.
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