U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) Collaborate to Enable Cryptocurrency Spot Trading on Registered American Exchanges Within Legal Framework
In a significant development for digital asset oversight in the United States, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have issued a collaborative statement. The joint effort aims to bring clarity to the market and streamline oversight by the agencies.
The move intends to support regulated innovation while maintaining oversight of digital asset markets. Under current law, SEC- and CFTC-registered exchanges can now facilitate spot crypto trading, including national securities exchanges and designated contract markets. This could potentially allow major exchanges like NYSE, Nasdaq, and CME to offer spot crypto trading.
The agencies are addressing long-standing industry pressures to have clearer rules, seeking to retain digital asset innovation in the United States. The coordination marks a significant development, facilitated by the President's Working Group. The statement outlines plans to work jointly on market surveillance, settlement systems, and trade data transparency.
The aim is to emphasize equity in trade, risk aversion, and investor safety. The agencies will provide a framework to help these exchanges meet compliance expectations. Moreover, they will collaborate on guidance for leveraged, margined, or financed spot crypto transactions involving retail commodities.
It's important to note that in the current U.S. regulatory environment, no regulated U.S. exchanges such as the NYSE, Nasdaq, or CME are authorized by the SEC or CFTC to offer spot cryptocurrency trading. However, the CME offers regulated futures on cryptocurrencies, but spot trading is not approved on these exchanges.
The new development could see these exchanges, already trusted by traditional investors, settling transactions in actual crypto tokens, reflecting live crypto prices. The joint effort focuses on harmonizing regulatory frameworks instead of issuing isolated enforcement actions, indicating that crypto products can function under the current system of regulation.
The agencies' announcement is an indication that they are seeking to support regulated innovation while maintaining oversight of digital asset markets. This collaborative project is occurring while Congress is still working on a larger crypto bill, potentially serving as a temporary solution before more explicit national regulations.
In February, the SEC and CFTC announced their intention to work together on crypto regulations under new leadership, signaling a cooperative future for digital assets. The aim is to stress the importance of maintaining a balance between innovation and regulation, ensuring that the U.S. remains a hub for digital asset growth while protecting investors and the market.
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