SEC & CFTC Allow Registered Exchanges to Trade Spot Crypto

Staff of the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a Joint Statement regarding the trading of certain spot crypto asset products. This Joint Statement clarifies staff’s views that SEC- and CFTC- registered exchanges are not prohibited from facilitating the trading of certain spot commodity products. The joint effort exemplifies how staff of the two agencies can coordinate to promote trading venue choice and optionality for market participants.

“Today’s joint staff statement represents a significant step forward in bringing innovation in the crypto asset markets back to America,” said SEC Chairman Paul Atkins. “Market participants should have the freedom to choose where they trade spot crypto assets. The SEC is committed to working with the CFTC to ensure that our regulatory frameworks support innovation and competition in these rapidly evolving markets.”

“Under the prior administration, our agencies sent mixed signals about regulation and compliance in digital asset markets, but the message was clear: innovation was not welcome. That chapter is over,” said CFTC Acting Chairman Caroline D. Pham. “By working together, we can empower American innovation in these markets and build on President Trump’s collaborative approach to making America the crypto capital of the world. Today’s joint agency statement is the latest demonstration of our mutual objective of supporting growth and development in these markets, but it will not be the last.”

The SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk (collectively, the “Divisions”) are coordinating efforts to facilitate the trading of certain spot crypto asset products on registered exchanges. This initiative is part of the SEC’s Project Crypto and the CFTC’s Crypto Sprint, and it builds on the recommendations of the President’s Working Group on Digital Asset Markets report on “Strengthening American Leadership in Digital Financial Technology.”

The Divisions stand ready to engage with market participants and support consideration by their respective agencies of exchange trading in certain spot crypto asset products. Market participants are invited to engage with SEC staff or CFTC staff, as needed, to discuss any questions or concerns they may have.

Source: SEC