Exchanges registered with the SEC or CFTC can facilitate certain spot crypto trading on registered venues, the agencies said, allowing trades in financed, leveraged, and margin-based spot crypto products while encouraging coordination to promote venue choice and improved market surveillance.
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Registered exchanges may facilitate spot crypto trading
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Coordination aims to expand trading venue choice and optionality for U.S. market participants.
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Regulatory statement covers leveraged, margin, and financed spot commodity transactions; clearinghouse-custodian partnerships and shared reference pricing encouraged.
Spot crypto trading clarified by SEC and CFTC: registered exchanges may facilitate certain spot crypto products — read the joint statement and implications for U.S. markets.
What does the SEC and CFTC joint statement mean for spot crypto trading?
The SEC and CFTC jointly stated that exchanges registered with either agency are not prohibited from facilitating certain spot crypto trading. The guidance targets spot crypto products involving leverage, margin, and financed retail commodity transactions and emphasizes coordination to promote venue choice.
How will registered exchanges facilitate spot crypto products?
Registered exchanges can list and facilitate trading of qualifying spot crypto asset products, provided they meet applicable regulatory and operational requirements.
The joint staff statement encourages clearinghouses to partner with custodians to maintain customer accounts and recommends that NSEs, DCMs, and FBOTs share reference pricing venues to improve market surveillance.
Why does the PWG report matter?
The President’s Working Group report, “Strengthening American Leadership in Digital Financial Technology,” asked agencies to provide regulatory clarity on digital assets.
The PWG Report’s recommendations prompted the SEC and CFTC coordination to reduce legal uncertainty and to support market structure options for spot crypto trading in the U.S.
Frequently Asked Questions
Are specific digital assets named in the joint statement?
No specific tokens were named. The statement focuses on categories of products — including financed, leveraged, and margin-based spot commodity transactions — rather than particular crypto assets.
Will major equity exchanges list spot BTC or ETH soon?
Industry commentators suggested that major exchanges may pursue spot listings for BTC and ETH. The statement removes a categorical prohibition for registered venues, but listing decisions depend on exchange assessments and regulator engagement.
Can clearinghouses and custodians support financed spot trades?
Yes. The agencies noted applicable rules will permit clearinghouses to partner with custodians to maintain customer accounts, enabling financed and margin spot transactions under appropriate safeguards.
Key Takeaways
- Regulatory clarification: SEC and CFTC staff say registered exchanges are not barred from facilitating certain spot crypto trading.
- Scope: Guidance centers on leveraged, margin, and financed spot commodity transactions, without naming specific tokens.
- Operational focus: Emphasis on clearing-custody partnerships and shared reference pricing to strengthen market surveillance.
Conclusion
The joint SEC and CFTC statement signals a meaningful step toward clearer rules for spot crypto trading on registered U.S. exchanges. Market participants should engage with regulator staff, plan for custody and clearing solutions, and adopt shared reference pricing to meet surveillance expectations. COINOTAG will monitor updates as agencies and exchanges implement next steps.
Acting CFTC Chairman Caroline Pham: “Proud to work together with @SECPaulSAtkins to deliver another win on regulatory clarity to trade crypto how you want and where you want to, safely on registered exchanges.” (Plain text citation of public statement.)
