The SEC and CFTC have teamed up to bring more clarity in the crypto sector as the U.S regulatory scene continues to take shape.
Summary
- The SEC and CFTC have unveiled a joint initiative to support regulated crypto spot trading.
- The partnership follows a history of disagreements over crypto regulations.
- Regulatory efforts in the U.S. are accelerating, with agencies seeking to provide clarity while maintaining investor protection.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have declared a new cross-agency program to encourage the trading of some spot crypto asset products.
This collaboration follows a history of disagreements over which digital assets qualify as securities, a key issue that has divided the agencies for years. The joint statement marks a turning point and builds on recent pro-crypto legislation, including the CLARITY Act, which seeks to define regulatory boundaries between both agencies.
New Initiative to support spot crypto trading
The SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk will jointly push forward with the SEC’s “Project Crypto” and the CFTC’s “Crypto Sprint” initiatives.
The joint push will focus on coordinating efforts to provide regulatory guidance on enabling the trading of leveraged, margined, or financed spot crypto asset products. By providing guidance, the agencies aim to show exchanges how these products can be offered legally and safely, while protecting investors and making the market more orderly.
Importantly, the joint staff statement clarified that existing law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading of certain spot crypto asset products. The Divisions also encouraged market participants to engage directly with the agencies to obtain guidance and clarity on compliance, operational requirements, and any approvals needed to offer these products .
SEC and CFTC target clearer crypto oversight
Collaborative efforts between the SEC and CFTC are part of a broader pro-crypto push under the Trump administration, particularly following the resignation of former SEC Chair Gary Gensler and the appointment of Paul Atkins in April.
The President Working Group on Digital Asset Markets encouraged the two agencies to leverage their current authorities to create an environment in which blockchain technology can further innovate in the U.S.
CFTC Acting Chair Caroline Pham said the agencies are adopting a new approach to reduce the uncertainty that has long challenged the crypto industry.
“Under the prior administration, our agencies sent mixed signals about regulation and compliance in digital asset markets, but the message was clear: innovation was not welcome. That chapter is over,” said CFTC Acting Chairman Caroline D. Pham.
SEC Chair Paul Atkins also hailed the initiative as a major step toward revitalizing the U.S. crypto market, calling it “an important step toward bringing innovation back to America’s crypto asset markets.”
The recent partnership follows a series of efforts over the past year to bridge the divide between the SEC and CFTC regarding crypto oversight. Earlier in March, crypto.news reported that the CFTC and SEC staff were already starting to discuss additional collaboration on the regulation of digital assets.
Lawmakers have also pushed for joint frameworks. Back in 2024, Tennessee Representative John Rose proposed the BRIDGE Digital Assets Act, which encouraged a joint framework between the SEC and CFTC to establish a committee of regulatory bodies and industry participants to create clear and consistent regulations for the market.
Clear regulations for the crypto industry have long been awaited, and the latest joint efforts show that U.S. regulators are signaling a willingness to put an end to the uncertainty that has long defined the sector.
