Registered Exchanges Can Now Facilitate Direct Cryptocurrency Trading, According to Decisions by SEC and CFTC
The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) announced a joint statement on Tuesday, aiming to provide clarity and regulatory certainty for exchanges considering the launch of spot crypto products. This effort is part of the SEC's Project Crypto initiative and the CFTC's Crypto Sprint program, both building on recommendations from the President's Working Group on Digital Asset Markets report.
Currently, no specific cryptocurrencies have been officially approved by the SEC and CFTC for trading on registered exchanges in a broad, publicly confirmed manner. However, the joint statement clarifies that registered exchanges can facilitate trading of certain spot crypto asset products. This clarification addresses a regulatory gray area that has prevented many traditional exchanges from offering direct spot crypto trading.
SEC Chairman Paul Atkins described the move as a significant step forward in bringing innovation in the crypto asset markets back to America. CFTC Acting Chairman Caroline Pham stated that 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.
The joint approach aims to provide regulatory certainty for exchanges considering crypto product launches. Exchange operators can contact either agency's staff to discuss implementation questions or regulatory concerns. The SEC's Division of Trading and Markets is coordinating with the CFTC's Division of Market Oversight and Division of Clearing and Risk for spot crypto trading on registered exchanges.
Market participants should have freedom to choose where they trade spot crypto assets, according to SEC Chairman Paul Atkins. The statement represents the first formal coordination between the SEC and CFTC on spot crypto trading rules. Some cryptocurrencies fall under SEC jurisdiction as securities, while others are treated as commodities under CFTC oversight.
The agencies did not specify which crypto assets would qualify for spot trading on registered exchanges or provide detailed implementation timelines. The focus has recently been on removing some reporting requirements for crypto activities by the Federal Reserve and fostering innovation, but explicit SEC/CFTC cryptocurrency approval listings or detailed plans were not found in the results.
The joint statement addresses longstanding regulatory uncertainty that has limited exchange offerings in digital assets. It is hoped that this clarification will encourage more traditional exchanges to enter the crypto market, increasing liquidity and fostering a healthier ecosystem for digital assets.
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