SEC and CFTC Collaborate on Crypto Oversight to Boost US Spot Markets
U.S. regulators are aligning to unlock spot crypto asset markets, clearing the way for exchanges to list leveraged digital products while preserving strong oversight and compliance.
SEC and CFTC Join Forces to Guide Spot Crypto Asset Markets
Staff from the U.S. Securities and Exchange Commission (SEC) and the U.S. Commodity Futures Trading Commission (CFTC) announced on Sept. 2 that they are coordinating efforts to oversee the trading of spot crypto asset products. The SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight and Clearing and Risk are working together to align their approaches, while maintaining their respective initiatives, Project Crypto and Crypto Sprint.
This collaboration stems from the President’s Working Group on Digital Asset Markets (PWG), which called for regulators to provide greater clarity so blockchain innovation and crypto market participation remain anchored in the United States. As the agencies explained:
As part of this effort, the Divisions are coordinating to issue guidance ‘regarding the listing of leveraged, margined, or financed spot retail commodity transactions on digital assets’ to implement the PWG Report recommendations.
In the joint statement, the divisions clarified that current regulations do not block exchanges registered with either the SEC or CFTC from listing these products. They stated: “This joint statement provides the Divisions’ view that current law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading of these spot crypto asset products. As contemplated by the PWG Report, the Divisions’ coordination will promote trading venue choice and optionality for market participants within the United States.”
The statement further highlighted the Commodity Exchange Act (CEA), which generally requires leveraged, margined, or financed “retail commodity transactions” to be conducted on a CFTC-registered designated contract market (DCM) or foreign board of trade (FBOT). However, an exception applies when such transactions are listed on an SEC-registered national securities exchange (NSE). The Divisions clarified that DCMs, FBOTs, and NSEs are not restricted from facilitating spot crypto asset transactions, and invited market participants to engage with staff at either agency as needed.
The agencies outlined key considerations for market participants, including margin, clearing, and settlement, where clearinghouses may partner with custodians. The SEC will handle inquiries from its registered clearing agencies, while the CFTC will engage with derivatives clearing organizations. Regulators also stressed market surveillance through shared pricing venues, transparency via public trade data, and the importance of fair and orderly markets to foster competition. They added that innovation is encouraged, provided investor and customer protections remain central. Together, these points signal a balanced approach to opportunity, competition, and risk management in spot crypto trading.
