On 2 September 2025, the United States Securities and Exchange Commission (US SEC) Division of Trading and Markets and the United States Commodity Futures Trading Commission (US CFTC) Divisions of Market Oversight and Clearing and Risk released a joint staff statement under Project Crypto and the Crypto Sprint. The initiative is designed to coordinate cross-agency efforts on enabling the trading of certain spot crypto asset products in the United States. The statement draws on recommendations from the President’s Working Group on Digital Asset Markets (PWG Report) which called for the US SEC and US CFTC to use existing powers to promote regulatory clarity and ensure blockchain innovation remains within the United States.
Legal Framework for Spot Crypto Commodity Products
The joint staff statement clarifies that current law does not prohibit exchanges registered with the US SEC or US CFTC from facilitating trading of certain spot crypto asset products. Under the Commodity Exchange Act, leveraged, margined or financed retail commodity transactions generally must be conducted on a CFTC-registered designated contract market (DCM) or foreign board of trade (FBOT). One exception applies when such transactions are listed on an SEC-registered national securities exchange (NSE). The Divisions confirmed that DCMs, FBOTs and NSEs are permitted to facilitate spot crypto asset products, giving US market participants more venue choice and flexibility.
Considerations for Market Participants
The staff outlined key operational considerations for exchanges, clearinghouses and custodians preparing to engage in spot crypto trading. Clearinghouses may partner with custodians to maintain customer accounts, with the SEC’s Division of Trading and Markets ready to address questions from registered clearing agencies, and the CFTC’s Division of Clearing and Risk available for enquiries from derivatives clearing organizations. Surveillance and monitoring will be enhanced by sharing reference pricing data between NSEs, DCMs and FBOTs. Public dissemination of trade data by SEC- and CFTC-registered exchanges was identified as an important mechanism for transparency. The Divisions also highlighted that efficient executions and transparent processes remain essential to promoting fair and orderly markets. Innovation is encouraged, but with a continued emphasis on investor and customer protections.
Regulatory Coordination and Market Impact
The US SEC and US CFTC emphasised that this joint initiative is intended to support a competitive and innovative market structure for crypto assets while ensuring investor safeguards. By working together, the agencies aim to reduce confusion caused by overlapping or divergent interpretations and create a framework where exchanges can confidently seek approval to list spot crypto products. The Divisions confirmed that filings and requests from market operators will be reviewed promptly, underscoring their readiness to engage with stakeholders.
US Regulators Advance Project Crypto-Crypto Sprint
The United States SEC and CFTC joint staff clarifies that registered exchanges are permitted to facilitate spot crypto asset trading, the agencies have provided regulatory certainty, reinforced the objectives of the PWG Report and supported the integration of blockchain innovation into the US financial system.
(Source: https://www.sec.gov/newsroom/speeches-statements/sec-cftc-project-crypto-090225)
