New SEC and CFTC Guidance Boosts Crypto Adoption

In a groundbreaking move, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have clarified that current laws do not prevent registered U.S. exchanges from offering certain spot crypto asset products. In a joint statement, the SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk affirmed that SEC- and CFTC-registered exchanges can facilitate such trades. SEC Chairman Paul Atkins emphasized that this step aims to reinvigorate the U.S. crypto market: 'Market participants should have the freedom to choose where they trade spot crypto assets.' This new initiative aligns with the SEC's Project Crypto and the CFTC's Crypto Sprint, building on recommendations from the President's Working Group on Digital Asset Markets. CFTC Acting Chair Caroline D. Pham recently initiated the Crypto Sprint, aimed at gathering public input on offering spot crypto contracts on designated markets. As per the joint statement, major U.S. exchanges are now cleared to provide spot trading in key digital assets. Two Prime Digital Assets CEO, Alexander Blume, noted, 'This opens the door for even more mainstream adoption, granting direct access to these commodity assets.' Participants in the market are encouraged to reach out to SEC or CFTC staff with any questions they may have, as the divisions are prepared to assist in this evolving landscape. Although exchanges like Coinbase, Kraken, and Gemini facilitate the trading of spot crypto assets such as Bitcoin and Ethereum, they do not fall under the same federal market structure as larger traditional exchanges like the Nasdaq. Notably, the SEC had previously dropped lawsuits against these crypto platforms this year. Matthew Sigel of VanEck remarked on social media that traditional exchanges like NYSE and Nasdaq will soon provide spot trading for Bitcoin and Ethereum, signifying a major shift. The Trump administration had aimed to position the U.S. as the 'crypto capital' of the world, seen in recent moves to regulate stablecoins and the ongoing development of a crypto market structure bill. Blume added that this news makes it easier to create Bitcoin products alongside conventional financial products. 'Bottom Line: The turf wars are ending,' stated Gerald Gallagher from the Sei protocol. 'The SEC and CFTC are rowing in the same direction, underscoring the importance of robust crypto trading infrastructure.' Disclaimer: The Block serves as an independent media outlet for news and research in the crypto space. Content is for informational purposes only and should not be construed as legal or financial advice.