A historic step has been taken for the crypto markets: The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) clarified in a joint statement on Tuesday that there are no legal impediments to registered exchanges facilitating the trading of certain spot crypto asset products.
An End to Regulatory Confusion
Years of regulatory uncertainty have prevented traditional financial giants in the U.S. from fully entering the cryptocurrency market. Jurisdictional battles over whether cryptocurrencies are securities or commodities have limited innovation and slowed the sector's development. However, this joint statement, released as part of the SEC's "Project Crypto" and the CFTC's "Crypto Sprint" initiatives, is the most concrete step toward clearing up this confusion. According to this statement, currently registered exchanges, including SEC-registered National Securities Exchanges (NSEs), CFTC-registered Designated Contract Markets (DCMs), and Foreign Boards of Trade (FBOTs), will now be able to list and facilitate trading of certain spot crypto products. This paves the way for major exchanges like Nasdaq and the New York Stock Exchange to also offer direct trading of leading digital assets like Bitcoin and Ethereum.
Aiming to Make America Crypto Capital
The joint statement is being interpreted as a step that reinforces President Donald Trump's goal of making the US "the crypto capital of the world" under his administration. SEC Chairman Paul Atkins described this development as "a significant step in bringing innovation in crypto asset markets back to the United States," emphasizing that market participants should be able to freely choose where to buy and sell spot crypto assets.
CFTC Acting Chairwoman Caroline D. Pham stated that the previous administration sent "mixed signals" and a clear message that innovation was not welcome, adding that this era is over. Pham stated that this joint venture is part of a strategy to consolidate US global leadership and support the development of blockchain technology.
Positive Reaction from the Industry
Market experts are calling this decision "historic." Alexander Blume, CEO of Two Prime Digital Assets, stated that this decision will open the door to greater mainstream adoption by providing direct access to digital assets on platforms where trillions of dollars are already held in traditional markets. VanEck digital assets researcher Matthew Sigel, in a post on the X platform, predicted that exchanges such as the NYSE, Nasdaq, CBOE, and CME will soon begin spot trading for Bitcoin and Ethereum.
This development could also mark the beginning of a new era for crypto exchanges like Coinbase, Kraken, and Gemini, which already offer spot crypto trading but are not NSEs or DCMs. The SEC's previous dismissal of its lawsuits against these exchanges was seen as a sign that regulators were adopting a more conciliatory approach, and this latest statement reinforces this theory. Gerald Gallagher, general counsel for Sei Protocol, commented on X, emphasizing the importance of this collaboration, saying, "The turf wars are ending. The SEC and the CFTC are rowing in the same direction." Gallagher added that this decision demonstrates the US's commitment to building high-performance crypto trading infrastructure. With this move, investors and market participants may have a clearer view of the future of digital assets.
