- On September 2, 2025, the Divisions of Trading and Markets at the U.S. Securities and Exchange Commission (SEC), alongside the Divisions of Market Oversight and Clearing and Risk at the U.S. Commodity Futures Trading Commission (CFTC), jointly released a collaborative announcement. This highlighted a new cooperative effort between the agencies to streamline the process for trading specific crypto asset products that are immediately deliverable.
- Subsequently, on September 5, 2025, Paul S. Atkins, Chairman of the SEC, and Caroline D. Pham, Acting Chairman of the CFTC, issued a mutual declaration regarding a joint SEC-CFTC forum focused on aligning regulations. Key topics included round-the-clock markets, event-based contracts, continuous contracts, portfolio-based margin, regulatory flexibility for innovation, and decentralized finance (DeFi).
- Both announcements emphasized the Divisions’ willingness to engage with industry participants to clarify current legal applications and address inquiries about registrations, proposals, and requests for appropriate allowances. This included “innovation exemptions,” designed to create secure spaces or exclusions allowing market participants to explore crypto trading activities.
Joint Announcement on Spot Crypto Asset Products and Trading
The SEC and CFTC’s Divisions unveiled a combined declaration on September 2, 2025, signaling a cross-agency initiative designed to harmonize their strategies concerning the facilitation of spot crypto asset product trading. This action supports the SEC’s Crypto Project and the CFTC’s Crypto Sprint, mirroring recommendations within the White House Crypto Report[1]. The aim is to foster regulatory certainty and encourage advancements in blockchain technology within the United States.
This combined announcement clarifies the Divisions’ stance that current regulations do not prevent CFTC-registered designated contract markets (DCMs), foreign boards of trade (FBOTs), or SEC-registered national security exchanges (NSEs) from enabling the trading of certain immediately deliverable crypto assets.
The announcement outlines the Divisions’ perspectives on several key factors for market participants interested in operating crypto markets and trading spot crypto products. The SEC and CFTC are also open to addressing any questions related to these considerations:
- Margin, Clearing, and Settlement. Existing regulations allow clearing organizations to collaborate with custodians to manage customer accounts.
- Underlying Market Oversight. Shared pricing data among NSEs, DCMs, and FBOTs enhances the effectiveness of market monitoring activities.
- Public Trade Data Availability. The broadcasting of trade data by NSEs and DCMs gives the public access to important information.
- Promoting Equitable and Stable Markets. Efficient transaction execution and transparency boost trading prospects and competition among market actors.
The joint statement indicates the Divisions stand ready to answer any questions regarding the points above. It encourages market participants to connect with SEC or CFTC staff as needed.
Joint Announcement on Regulatory Harmonization and Joint Roundtable Discussion
On September 5, 2025, SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham issued a collaborative statement, emphasizing the need for greater consistency between the SEC and CFTC’s regulatory approaches. They also announced a joint roundtable event focusing on regulatory alignment, scheduled for September 29, 2025.
The joint statement lists the topics for discussion that will be prioritized at the joint roundtable:
- 24/7 Markets. The SEC and CFTC are contemplating further expansion of trading hours, recognizing that the feasibility of this may vary across different asset classes.
- Event Contracts. The SEC and CFTC are weighing the possibility of making event contracts accessible to U.S. market participants, irrespective of jurisdictional matters.
- Perpetual Contracts. The SEC and CFTC might explore synchronized steps to bring continuous contracts (derivatives with no set expiration) into compliance with investor and customer protection standards, potentially enabling them to be traded on SEC- and CFTC-regulated platforms.
- Portfolio Margining. The SEC and CFTC are considering harmonizing margin requirements, which would allow broker-dealers, futures commission merchants, and clearing members to balance offsetting positions across various product types. The SEC and CFTC may also look into allowing clearinghouses to offer portfolio-based margin across their respective regulated products with the goal of avoiding redundant registration requirements or conflicting compliance obligations.
- Innovation Exemptions and Decentralized Finance. The SEC and CFTC are open to considering “innovation exemptions” to establish secure harbors or exceptions. These would allow market participants to engage in peer-to-peer trading of spot crypto assets, and leveraged, margined, or other transactions, via DeFi protocols (including perpetual contracts).
Looking Ahead
These joint declarations reinforce the ongoing commitment of the SEC and CFTC to tackle the regulatory considerations surrounding crypto assets. Anticipate further guidance and rulemaking, and businesses should remain alert to future developments from both agencies.
For deeper analysis of recent SEC and CFTC activity, refer to our previously released client updates.[2]
[1] See Client Alert: Key Takeaways from the White House Crypto Report (August 6, 2025), available at https://www.mofo.com/resources/insights/250806-key-takeaways-from-the-white-house-crypto-report.
[2] See Client Alert: Highlights of Recent CFTC Developments (August 19, 2025), available at https://www.mofo.com/resources/insights/250819-highlights-of-recent-cftc-developments; Client Alert: Key Takeaways from the White House Crypto Report (August 6, 2025), available at https://www.mofo.com/resources/insights/250806-key-takeaways-from-the-white-house-crypto-report; Client Alert: The GENIUS Act: A New Federal Regulatory Framework for Payment Stablecoins (July 21, 2025), available at https://www.mofo.com/resources/insights/250721-the-genius-act-a-new-federal-regulatory; Client Alert: CFTC Staff Issue Interpretive Letter on Cross-Border Definitions (May 25, 2025), available at https://www.mofo.com/resources/insights/250529-cftc-staff-issue-interpretive-guidance.