Regulatory body CFTC aims to introduce spot cryptocurrency trading on futures markets. Public feedback is sought by August 18.
U.S. Regulators Push Forward with Coordinated Crypto Regulation Efforts
In a significant move towards modernizing the regulation of digital assets, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have launched complementary initiatives known as Project Crypto and Crypto Sprint, respectively. These initiatives aim to create a clear, modernized, and innovation-friendly regulatory framework for digital asset markets in the U.S.
The CFTC's Crypto Sprint, announced on August 1, 2025, is a rapid initiative to clarify how cryptocurrencies may be regulated as commodities, how decentralised finance (DeFi) is integrated under its registration requirements, and to update rules for blockchain derivatives. On the other hand, the SEC's Project Crypto, launched around the same time, is aimed at modernizing securities regulations to facilitate tokenization and enable crypto assets to function smoothly within regulated markets.
Acting CFTC Chair Caroline Pham and SEC Chair Paul Atkins are leading the efforts, with a mutual commitment to regulatory clarity and innovation in digital asset markets. The coordination aims to fulfill the broader administration goal of making America the global crypto capital.
Practical steps taken include the CFTC allowing spot crypto trading on futures exchanges registered with it, and the SEC providing clarifications on certain crypto activities like liquid staking to reduce regulatory uncertainty. Acting Chairman Pham is seeking the opinion of stakeholders and the community on crypto market regulation using existing CFTC crypto rules.
The SEC Chair Paul Atkins has stated that Project Crypto will deal with rulemaking in areas such as digital asset custody, token distributions, and secondary market trading. The CFTC's Crypto Sprint is in line with suggestions posted in a recent report on digital assets, which suggested that the crypto spot markets falling within the commodity frequency should have direct authority over the regulation.
The strategy aims to foster the development of a digital asset trading area without excluding investor protections. The endeavor could form the basis of the future role US regulators play in regulating digital asset infrastructure. Stakeholders are encouraged to participate in the consultation process, as their views will factor into future regulatory measures concerning Digital Commodity Markets (DCMs) that provide spot crypto trading.
This engagement may lead to extended availability of regulated products in the digital asset space, increased market transparency, and additional trading opportunities via accredited futures exchanges. The move will support increased regulatory clarity in the emerging digital asset ecosystem. The initiatives are currently in active implementation and are expected to play a significant role in shaping the future of digital asset regulation in the U.S.
[1] CFTC Press Release: CFTC Launches Crypto Sprint to Examine Listing of Spot Crypto Asset Contracts on Registered Futures Exchanges [2] SEC Press Release: SEC Announces Launch of Project Crypto to Modernize Oversight of Digital Assets [3] CFTC Staff Report: Crypto Sprint: Initial Steps in Examining the Listing of Spot Crypto Asset Contracts on Registered Futures Exchanges [4] SEC Staff Report: Project Crypto: Modernizing Oversight of Digital Assets [5] White House Executive Order on Ensuring American Leadership in Digital Assets
The article will accept public comments till August 18.
Investors may find clarity in regulating cryptocurrencies as commodities, as the CFTC's Crypto Sprint initiative aims to update rules for blockchain derivatives and integrate decentralized finance under its registration requirements. Meanwhile, the SEC's Project Crypto is modernizing securities regulations to facilitate tokenization and enable crypto assets to function smoothly within regulated markets, which potentially opens up new investing opportunities in the future of digital asset finance.
