In a significant move for the U.S. crypto industry, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint statement on September 2, 2025, providing long-awaited clarity on the trading of spot crypto assets. The agencies affirmed that current law does not prohibit national securities exchanges (NSEs), designated contract markets (DCMs), or foreign boards of trade (FBOTs) from facilitating the trading of certain spot crypto commodity products. This interpretation marks a pivotal shift in the regulatory landscape, potentially unlocking new avenues for institutional participation in the digital asset market.
The joint statement emphasizes that exchanges seeking to list spot crypto products must adhere to existing regulatory frameworks, including compliance with anti-manipulation rules, market surveillance, and appropriate disclosures. The SEC and CFTC have committed to coordinating their efforts to promote trading venue choice for U.S. crypto market participants, signaling a move towards a more harmonized regulatory approach.
Concurrently, the CFTC is advancing its “Crypto Sprint” initiative, focusing on the integration of tokenized collateral, including stablecoins, into derivatives markets. Acting Chairman Caroline D. Pham announced the launch of this initiative, highlighting its potential to modernize collateral management and enhance capital efficiency in financial markets. The CFTC is actively soliciting public feedback on the use of tokenized collateral, with a deadline for comments set for October 20, 2025.
This initiative aligns with the recommendations from the President’s Working Group on Digital Asset Markets, aiming to foster innovation while ensuring market integrity. Industry leaders have expressed strong support for the CFTC’s efforts, viewing the integration of stablecoins as collateral as a critical step towards bridging the gap between traditional finance and the digital asset ecosystem.
In a related development, the SEC has rescinded Staff Accounting Bulletin (SAB) 121, which previously required financial institutions to account for crypto assets held for customers as liabilities. The revocation of SAB 121, replaced by SAB 122, alleviates significant accounting burdens for banks and custodians, potentially encouraging greater participation in the crypto space.
While these regulatory advancements represent a positive trajectory for the U.S. crypto market, challenges remain. The evolving nature of digital assets necessitates continuous adaptation of regulatory frameworks to address emerging risks and ensure investor protection. The SEC and CFTC’s collaborative efforts signal a commitment to creating a balanced regulatory environment that supports innovation while safeguarding market integrity.
For crypto projects and investors, staying informed about these regulatory developments is crucial. Engaging with ongoing consultations and preparing for forthcoming regulations will be essential for navigating the evolving landscape of U.S. crypto regulation.
