Regulatory bodies SEC and CFTC pave the way for trading cryptocurrencies straight-up on approved stock exchanges.

The U.S. Securities and Commodities regulators, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), issued a joint statement on Tuesday, marking the first formal coordination between the two agencies on spot crypto trading rules.

This collaboration is part of the SEC's Project Crypto initiative and the CFTC's Crypto Sprint program, which are based on recommendations from the President's Working Group on Digital Asset Markets report. The joint statement aims to provide regulatory certainty for exchanges considering crypto product launches and addresses longstanding regulatory uncertainty that has limited exchange offerings in digital assets.

The clarification addresses a regulatory gray area that has prevented many traditional exchanges from offering direct spot crypto trading. The joint statement clarifies that registered exchanges can facilitate trading of certain spot crypto asset products. However, the agencies did not specify which crypto assets would qualify for spot trading on registered exchanges or provide detailed implementation timelines.

The SEC's Division of Trading and Markets and CFTC's Division of Market Oversight and Division of Clearing and Risk are collaborating to facilitate spot crypto trading on registered exchanges. Exchange operators can contact either agency's staff to discuss implementation questions or regulatory concerns.

Market participants should have freedom to choose where they trade spot crypto assets, according to SEC Chairman Paul Atkins. He described the move as a significant step forward in bringing innovation in the crypto asset markets back to America. CFTC Acting Chairman Caroline Pham stated that the prior administration sent mixed signals with a clear message that innovation was not welcome. She described the joint statement as part of President Donald Trump's approach to making America the crypto capital of the world.

The approval for registered exchanges to offer crypto-asset products was influenced by the initiatives of the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), which were involved in regulating and setting frameworks for these products since 2021. Some cryptocurrencies fall under SEC jurisdiction as securities, while others are treated as commodities under CFTC oversight.

The agencies are prepared to engage with market participants seeking to launch spot crypto products on registered venues. The joint approach aims to encourage growth and innovation in the crypto market while ensuring compliance with U.S. securities and commodities laws. This joint statement is expected to bring clarity and confidence to the crypto market, potentially leading to increased adoption and investment in digital assets.

Regulatory bodies SEC and CFTC pave the way for trading cryptocurrencies straight-up on approved stock exchanges.