CFTC and SEC Staff Issue Joint Statement Clarifying Spot Crypto Asset Trading on Registered Exchanges

Staff from the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have published a joint statement clarifying regulatory guidance on the trading of certain spot crypto asset products. The joint statement clarifies staff views that exchanges registered with either the SEC or CFTC are not prohibited from facilitating the trading of certain spot commodity products. The initiative is designed to demonstrate regulatory coordination between the two agencies while providing market participants with greater venue choice and flexibility. According to the regulators, the guidance aims to resolve prior regulatory ambiguity and support the growth of domestic digital asset markets. CFTC Acting Chairman Caroline D. Pham highlighted the shift in regulatory direction, stating that the agencies are working together to empower American innovation and build on collaborative efforts to strengthen the U.S. position in the digital asset market. Pham noted that the joint release represents a mutual objective to support market development. SEC Chairman Paul Atkins stated that the joint staff guidance marks an important step toward supporting innovation in crypto asset markets within the United States. Atkins underscored that market participants should have the freedom to select where they execute spot crypto asset transactions, adding that the SEC is committed to cooperating with the CFTC to maintain regulatory structures that encourage competition and technological development. The regulatory coordination involves the SEC’s Division of Trading and Markets along with the CFTC’s Division of Market Oversight and Division of Clearing and Risk. The collaborative effort is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, aligning with recommendations from the President's Working Group on Digital Asset Markets report, titled "Strengthening American Leadership in Digital Financial Technology." Staff across the involved divisions have invited market participants to engage directly with either agency to discuss questions or regulatory considerations related to exchange-facilitated spot crypto asset trading.