The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced the start of a joint program aimed at enhancing the regulation of crypto trading in the country.
Joint SEC and CFTC Initiative
The SEC and CFTC have announced a joint initiative to support trading of certain spot crypto assets. This statement marks a significant step in the history of interaction between the two agencies, which has often been characterized by disagreements over the classification of digital assets.
Goals of the New Project
Together, the SEC and CFTC will promote initiatives such as the SEC's 'Project Crypto' and the CFTC's 'Crypto Sprint'. The main goal is to provide regulatory guidance on trading leveraged and financed crypto assets, with an emphasis on investor protection.
Regulatory Approach of Both Organizations
The joint statement clarified that existing laws do not prohibit SEC- or CFTC-registered exchanges from facilitating the trading of certain spot crypto assets. This also implies support for market participants to engage with the agencies for clarity on compliance and regulatory requirements.
With the recent collaborative efforts of the SEC and CFTC, U.S. regulators are striving to establish clear frameworks for the crypto industry and improve trading and investment conditions in digital assets.
