The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) released a joint statement regarding the trading of cryptocurrencies on registered exchanges.
Joint SEC and CFTC Statement
The statement confirmed that registered exchanges are not prohibited from facilitating the trading of certain crypto commodity products. This decision solidifies the concept of crypto assets as commodities, not securities, allowing a greater variety of products and services to emerge in the U.S.
"Today's joint statement represents a significant step forward in bringing innovation in the crypto asset markets back to America," said SEC Chairman Paul Atkins.
Market Impact of the Announcement
NovaDius Wealth Management President Nate Geraci noted that this initiative signals the mainstreaming of crypto trading, as it will now occur on major venues like the NYSE and Nasdaq.
"Next stop after that? Every major traditional brokerage. I know you’re paying attention now," he added.
Market Reactions and Outlook
Following the announcement, there was a minor spike in the crypto markets, with total capitalization rising to $3.91 trillion. However, these positive statements from regulators have not significantly impacted the market recently.
Bitcoin reclaimed $111,000 while Ethereum has continued its decline, falling to $4,300. Most analysts agree that the markets are cooling from recent highs and resetting before the bullish trend continues in the fourth quarter.
The joint SEC and CFTC statement opens new opportunities for legalization and growth of the cryptocurrency market in the U.S. Regulators emphasize the importance of supporting innovation and competition in this rapidly evolving industry.
