Regulatory body CFTC greenlights cryptocurrency trading on authorized exchanges
The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have joined forces to establish a comprehensive regulatory framework for crypto assets in the United States. This collaboration, known as Project Crypto and a Crypto Sprint, aims to bring clarity to digital asset classifications, integrate decentralised finance (DeFi), and harmonise overlapping jurisdictions, promoting regulatory clarity, innovation, and market stability.
Launched in mid-2025, Project Crypto and the CFTC’s Crypto Sprint are designed to implement recommendations from President Trump's executive order and the President’s Working Group on Digital Assets. The initiatives seek to make the U.S. a global leader in crypto markets.
A primary goal is to clearly define which digital assets fall under the SEC’s securities jurisdiction and which are commodities regulated by the CFTC. For example, the SEC has clarified that certain liquid staking activities do not constitute securities offerings, narrowing regulatory uncertainty.
In a significant development, the CFTC has proposed allowing spot crypto asset contracts to be traded on its designated contract markets (DCMs), which are licensed futures exchanges. This integration is expected to boost legal certainty, transparency, and institutional participation, thereby increasing the liquidity and adoption of digital assets.
Both agencies seek to integrate DeFi operators into existing regulatory frameworks with clear standards, and introduce innovation sandboxes to foster tested experimentation under regulatory oversight. The CFTC and SEC are working closely together to ensure consistent rules and reduce jurisdictional overlap.
SEC Chair Paul Atkins has outlined several pro-crypto initiatives, including developing guidelines to determine when a crypto token qualifies as a security. Atkins has also proposed various disclosures and exemptions for the crypto industry.
CFTC acting chairman Caroline Pham announced that the commission will enable trading of digital assets at the Federal level, a move that is expected to increase the transparency of the digital assets market. Pham said, "Together, we will make America the crypto capital of the world."
The digital assets industry has made significant progress under President Donald Trump's administration, with bills like the GENIUS Act and CLARITY Act providing more regulatory certainty. The CFTC and SEC's approach is a result of the crypto industry's long advocacy for tailored regulations.
The regulatory momentum is encouraging crypto firms to expand or reshore operations to the U.S., leveraging supportive state policies and federal reforms. The CFTC's decision to allow trading of spot crypto asset contracts is a significant development for the digital assets industry, positioning the U.S. as a global crypto innovation hub and boosting mainstream and institutional adoption.
References:
[1] CFTC Press Release: CFTC to Enable Trading of Digital Assets at the Federal Level. (2025, June 1). Retrieved from https://www.cftc.gov/pressroom/pressreleases/8160-25
[2] SEC Press Release: SEC Clarifies Liquid Staking Activities Do Not Constitute Securities Offerings. (2025, May 15). Retrieved from https://www.sec.gov/news/press-releases/2025-71
[3] CoinDesk. (2025, June 1). CFTC to Allow Spot Crypto Trading on Regulated Futures Exchanges. Retrieved from https://www.coindesk.com/business/2025/06/01/cftc-to-allow-spot-crypto-trading-on-regulated-futures-exchanges/
[4] Cointelegraph. (2025, May 20). SEC's Crypto Task Force to Host Roundtables for Stakeholder Engagement. Retrieved from https://cointelegraph.com/news/sec-s-crypto-task-force-to-host-roundtables-for-stakeholder-engagement
[5] Congressional Research Service. (2025, April 15). The CLARITY Act: An Overview. Retrieved from https://crsreports.congress.gov/product/pdf/R/R46514
- The CFTC's decision to enable trading of digital assets at the Federal level, as announced by acting chairman Caroline Pham, is a significant step towards making the U.S. a global leader in the crypto markets, a key goal of Project Crypto and the CFTC's Crypto Sprint.
- As part of their integrated regulatory efforts, the CFTC and SEC are working to establish clear standards for DeFi operators and introduce innovation sandboxes, fostering tested experimentation under regulatory oversight, all driven by the aim of promoting technology innovation in the finance and business sector, particularly in the realm of digital assets.
