On September 2, 2025, the Securities and Exchange Commission (SEC) Division of Trading and Markets and the Commodity Futures Trading Commission (CFTC) Divisions of Market Oversight and Clearing and Risk (Divisions) issued a joint statement (Joint Statement) announcing a cross-agency initiative to coordinate efforts in enabling “certain spot crypto asset products” to trade on regulated exchanges. The Joint Statement is perhaps most noteworthy as the earliest and most visible instance of interagency cooperation on crypto regulation.
It has been followed by additional announcements of cooperation, with what their respective leadership has described as “a new day at the SEC and the CFTC” in which their work “has never been more intertwined.”[1]
Earlier this year, the President’s Working Group on Digital Asset Markets (President’s Working Group), of which the SEC’s chair and the CFTC’s acting chair are members, issued a report titled Strengthening American Leadership in Digital Financial Technology (President’s Report).[2] The President’s Report contains numerous recommendations and directives to both agencies, including that each use its existing regulatory authority to promote “regulatory clarity that best keeps blockchain-based innovation within the United States.”[3] The Joint Statement is a part of that effort.
The reference in the Joint Statement to “certain” digital asset products is to “leveraged, margined, or financed spot retail commodity transactions” in those assets. Under Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) a leveraged retail commodity transaction, with certain exceptions, is regulated “as if” it were a futures contract.[4] This includes the requirement that the contract or transaction be offered only on a CFTC-regulated designated contract market (DCM).[5] Among the exceptions, however, is for agreements, contracts, or transactions listed on a national securities exchange registered under Section 6(a) of the Securities Exchange Act of 1934 (NSEs).[6]
In that vein, the Joint Statement provides that, in the view of the Divisions, “current law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading of these spot crypto asset products.” Specifically, it explains that DCMs and NSEs (as well as registered foreign boards of trade) are not prohibited from offering these futures-like products. Although the Joint Statement discusses the legal basis for CFTC-regulated exchanges to offer these transactions, it does not elaborate on the basis in securities law for an NSE to do so.
The Joint Statement follows closely on the heels of a Request for Input (RFI) by the CFTC’s Acting Chairman on trading of Section 2(c)(2)(D) transactions on DCMs.[7] Twenty commenters responded, including the Futures Industry Association and DCMs Coinbase, Bitnomial, and the Intercontinental Exchange. On the whole, the commenters expressed support for clear “rules of the road” to govern crypto trading, and agreement that the CEA currently does allow leveraged digital asset products to trade on DCMs.
It bears emphasis that the Joint Statement articulates the Divisions’ views of current law. However, no exchange to date has offered the sorts of contracts described in Section 2(c)(2)(D). It may be that these transactions so closely resemble futures that the exchanges have found it more efficient simply to offer digital-asset futures. On the other hand, the Divisions’ offer to engage with the exchanges on this subject may lead to greater diversity of exchange-traded crypto products. It is difficult to discern from the RFI comments whether there is genuine interest. Moreover, Section 2(c)(2)(D) transactions cover far more commodities than just digital assets. It is possible that with the agencies’ encouragement, leveraged transactions in traditional commodities will become more attractive to the exchanges.
On a practical level, the Joint Statement emphasizes that the Divisions stand ready to engage with the exchanges on subjects including custody of assets, market surveillance, data dissemination, and trade execution. Interested exchanges should consider doing so.
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[1] Joint Statement from the Chairman of the SEC and Acting Chairman of the CFTC, September 5, 2025.
[2] President’s Working Group on Digital Asset Markets, Strengthening American Leadership in Digital Financial Technology, July 30, 2025.
[3] Id. at 143.
[4] 7 USC § 2(c)(2)(D)(iii).
[5] Id. at § 6(a).
[6] 15 USC § 78f(a).
[7] Acting Chairman Pham Launches Listed Spot Crypto Trading Initiative, August 4, 2025.