SEC, CFTC Clear Path for Spot Crypto Trading on Registered Exchanges

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) issued a joint statement Tuesday clarifying that registered exchanges can facilitate trading of certain spot crypto asset products, marking a significant regulatory shift under the Trump administration.

The statement from both agencies' staff divisions represents the first formal coordination between the SEC and CFTC on spot crypto trading rules, addressing longstanding regulatory uncertainty that has limited exchange offerings in digital assets.

SEC Chairman Paul Atkins called the move "a significant step forward in bringing innovation in the crypto asset markets back to America," emphasizing market participants should have "freedom to choose where they trade spot crypto assets."

CFTC Acting Chairman Caroline Pham took a more pointed tone, stating the prior administration sent "mixed signals" with a clear message that "innovation was not welcome." She described the joint statement as part of President Donald Trump's approach to making America "the crypto capital of the world."

Regulatory Coordination

The SEC's Division of Trading and Markets is coordinating with the CFTC's Division of Market Oversight and Division of Clearing and Risk to facilitate spot crypto trading on registered exchanges. This effort falls under the SEC's Project Crypto initiative and the CFTC's Crypto Sprint program.

Both initiatives build on recommendations from the President's Working Group on Digital Asset Markets report titled "Strengthening American Leadership in Digital Financial Technology," which outlined regulatory reforms to support domestic crypto innovation.

The agencies indicated their staff divisions are prepared to engage with market participants seeking to launch spot crypto products on registered venues. Exchange operators can contact either agency's staff to discuss implementation questions or regulatory concerns.

The clarification addresses a regulatory gray area that has prevented many traditional exchanges from offering direct spot crypto trading. Previously, most crypto spot trading occurred on specialized digital asset platforms rather than established securities or derivatives exchanges.

The joint approach aims to provide regulatory certainty for exchanges considering crypto product launches while ensuring appropriate oversight across different asset classifications. Some cryptocurrencies fall under SEC jurisdiction as securities, while others are treated as commodities under CFTC oversight.e

The agencies did not specify which crypto assets would qualify for spot trading on registered exchanges or provide detailed implementation timelines, with the statement focusing on general principles rather than specific product approvals.