SEC-CFTC Joint Statement on Crypto

In September, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) released a joint statement on a cross-agency initiative (the SEC’s Project Crypto and the CFTC’s Crypto Sprint) to “coordinate efforts regarding the process for enabling the trading of certain spot crypto asset products.” The President’s Working Group on Digital Asset Markets report on “Strengthening American Leadership in Digital Financial Technology” recommended that the SEC and CFTC should use their existing authorities to provide regulatory clarity that works to keep blockchain-based innovation within the United States. The statement highlights the agencies’ view that “current law does not prohibit SEC- or CFTC-registered exchanges from facilitating trading of these spot crypto asset products.” According to the statement, “[a]s market participants prepare to submit any necessary registrations, proposals, or requests for appropriate relief to the SEC and/or CFTC, the Divisions stand ready to engage regarding any questions.” The statement also sets forth considerations for market participants regarding clearing-related issues, monitoring of underlying markets, and public dissemination of trading data, among other issues. In his remarks on the joint statement, SEC Chairman Paul Atkins noted, “[m]arket participants should have the freedom to choose where they trade spot crypto assets. The SEC is committed to working with the CFTC to ensure that our regulatory frameworks support innovation and competition in these rapidly evolving markets.”

Click here to read the joint SEC and CFTC statement on spot crypto asset products.
Click here to read the SEC press release covering the joint statement.