SEC and CFTC Forge Historic Alliance to Unlock Crypto’s Regulatory Future

Wall Street's watchdogs just teamed up—and crypto's never been happier.

The Regulatory Game-Changer

SEC and CFTC officials finalized a joint framework that scraps years of bureaucratic ambiguity. No more guessing which agency governs which token—clear rules now map digital assets to existing securities and commodities laws.

Market Impact

Traders reacted instantly—major coins ripped upward on the news. Institutional money, once sidelined by regulatory risk, now eyes crypto with fresh appetite. Finally, compliance teams can sleep without dreaming of subpoenas.

Finance’s Ironic Twist

Traditional banks—the same institutions that dismissed crypto as a ‘fraud’ five years ago—now scramble to build custody solutions. Nothing clarifies innovation like the scent of profit.

This isn’t just policy—it’s fuel for crypto’s next bull run.

New Initiative to support spot crypto trading

The SEC’s Division of Trading and Markets and the CFTC’s Division of Market Oversight and Division of Clearing and Risk will jointly push forward with the SEC’s “Project Crypto” and the CFTC’s “Crypto Sprint” initiatives. 

The joint push will focus on coordinating efforts to provide regulatory guidance on enabling the trading of leveraged, margined, or financed spot crypto asset products. By providing guidance, the agencies aim to show exchanges how these products can be offered legally and safely, while protecting investors and making the market more orderly.

Importantly, the joint staff statement clarified that existing law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading of certain spot crypto asset products. The Divisions also encouraged market participants to engage directly with the agencies to obtain guidance and clarity on compliance, operational requirements, and any approvals needed to offer these products .

SEC and CFTC target clearer crypto oversight

Collaborative efforts between the SEC and CFTC are part of a broader pro-crypto push under the TRUMP administration, particularly following the resignation of former SEC Chair Gary Gensler and the appointment of Paul Atkins in April.

The President Working Group on Digital Asset Markets encouraged the two agencies to leverage their current authorities to create an environment in which blockchain technology can further innovate in the U.S.

CFTC Acting Chair Caroline Pham said the agencies are adopting a new approach to reduce the uncertainty that has long challenged the crypto industry.

“Under the prior administration, our agencies sent mixed signals about regulation and compliance in digital asset markets, but the message was clear: innovation was not welcome. That chapter is over,” said CFTC Acting Chairman Caroline D. Pham.

SEC Chair Paul Atkins also hailed the initiative as a major step toward revitalizing the U.S. crypto market, calling it “an important step toward bringing innovation back to America’s crypto asset markets.” 

The recent partnership follows a series of efforts over the past year to bridge the divide between the SEC and CFTC regarding crypto oversight. Earlier in March, crypto.news reported that the CFTC and SEC staff were already starting to discuss additional collaboration on the regulation of digital assets. 

Lawmakers have also pushed for joint frameworks. Back in 2024, Tennessee Representative John ROSE proposed the BRIDGE Digital Assets Act, which encouraged a joint framework between the SEC and CFTC to establish a committee of regulatory bodies and industry participants to create clear and consistent regulations for the market.

Clear regulations for the crypto industry have long been awaited, and the latest joint efforts show that U.S. regulators are signaling a willingness to put an end to the uncertainty that has long defined the sector.