SEC and CFTC support spot crypto trading on registered platforms, signaling regulatory clarity and expanding access to Bitcoin and Ethereum markets.
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) recently made a big announcement. They issued a joint statement supporting spot crypto trading on registered platforms. This means that some cryptocurrencies, like Bitcoin and Ethereum, are now able to be traded on regulated exchanges.
US Regulators Signal Support for Spot Crypto Trading on NSEs, DCMs, and FBOTs
Specifically, this trading can be conducted on the following types of markets: National securities exchanges (NSEs) that are registered with the SEC, designated contract markets (DCMs) that are registered with the CFTC, and foreign boards of trade (FBOTs). The agencies asked platforms to contact them to find ways to make this happen.
First, the statement demonstrates a willingness by US regulators to include cryptocurrencies in the mainstream financial system. They made the point that existing laws do not prevent registered platforms from providing spot crypto products as long as they comply with the rules. This represents a change from the uncertainty that existed regarding the regulation of crypto in the past. For instance, SEC Chair Paul Atkins referred to it as a “major step” towards restoring innovation in crypto in the United States. Similarly, CFTC Acting Chair Caroline Pham referred to it as a “turning point” from past policies that discouraged the growth of crypto.
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Next, the agencies issued guidance for exchanges that want to provide spot crypto trading. The SEC’s Division of Trading and Markets and the CFTC’s Divisions of Market Oversight, Clearing, and Risk described key considerations: These include margin requirements, clearing processes, settlement procedures, and trade data reporting to the public. By taking these points into account, the agencies hope to ensure that crypto trading is safe and transparent for investors.
Sigel Predicts Spot Bitcoin, Ethereum Trading on NYSE, CME, Cboe
Matthew Sigel, head of digital assets research at VanEck, gave his take on X. He forecast that large exchanges like the NYSE, Nasdaq, Cboe, and CME may soon add spot trading for cryptocurrencies such as Bitcoin and Ethereum. This has the potential to make crypto more accessible to everyday investors. Sigel’s comment emphasizes the potential for traditional financial giants to venture into the crypto market directly.
In addition, the SEC and CFTC reiterated their willingness to work with exchanges. They said their staff is ready to analyze applications from NSEs, DCMs, and FBOTs seeking to list spot crypto products. This level of openness heralds a cooperative spirit in the expansion of crypto trading in the U.S.
In addition, the regulators linked this announcement to broader initiatives. The SEC and CFTC are in the process of launching Project Crypto and Crypto Sprint, which look to align oversight of digital assets. These initiatives aim to provide greater choice for market participants, while still providing adequate regulation. Atkins said, for example, “Market participants should be free to select which venue they trade spot crypto assets on.” Pham also said that previous administrations sent mixed messages regarding crypto regulation, but now “that chapter is over.”
In conclusion, this joint statement is a significant moment for cryptocurrency in the U.S. In essence, by allowing spot crypto trading through registered platforms, the SEC and CFTC are opening the door to innovation. They are also making sure that exchanges play by clear rules to keep investors safe. As a result, major exchanges will soon be offering crypto trading, making it easier for Americans to get involved in this booming market.
