Darting from the blocks, the CFTC's crypto sprint begins

Last week, Commodity Futures Trading Commission (CFTC) Acting Chair Caroline Pham announced a “crypto sprint” to implement the recommendations of President Trump’s Working Group on Digital Asset Markets 166-page report. The announcement was timed to align with the SEC Chair's announcement of Project Crypto and a wave regulatory and policy reforms under a broader vision to upgrade the US financial system bringing it on chain

The CFTC is wasting no time in fulfilling President Trump’s vision to make America the crypto capital of the world. We will work closely with SEC Chairman Paul Atkins and Commissioner Hester Peirce to achieve Project Crypto. Providing regulatory clarity now and fostering innovation in digital asset markets will deliver on the Administration’s promise to usher in a Golden Age of Crypto.

Building on that announcement, the CFTC unveiled its first initiative under the "crypto sprint" for trading spot crypto asset contracts that are listed on a CFTC-registered futures exchange (designated contract market or DCM).

Acting Chair Pham stated:

...the CFTC is full speed ahead on enabling immediate trading of digital assets at the Federal level in coordination with the SEC’s Project Crypto. There is a clear and simple solution the CFTC can implement now. The Commodity Exchange Act currently requires that retail trading of commodities with leverage, margin, or financing must be conducted on a DCM. Starting today, we invite all stakeholders to work with us on providing regulatory clarity on how to list spot crypto asset contracts on a DCM using our existing authority, as I have previously proposed since 2022. Together, we will make America the crypto capital of the world.

CFTC seeks input from stakeholders

As part of its spot trading initiative, the CFTC is seeking input from interested stakeholders. The agency is encouraging feedback on how best to approach the listing of spot crypto asset contracts on DCMs. Key areas for comment include:

• Section 2(c)(2)(D) of the Commodity Exchange Act, which mandates that retail commodity trades involving leverage, margin or financing must take place on a registered DCM.
• Part 40 of the CFTC’s regulations, which outlines the procedural and compliance standards that DCMs must follow when listing new products and enforcing market rules.
• Whether there are any implications under the securities laws or regulations with respect to an SEC framework for trading of non-security assets that are part of an investment contract.

Interested parties can submit comments by 18 August 2025 via the CFTC’s website. All submissions will be published on CFTC.gov. If any past consultations are a guide, we expect a raft of submissions from industry, which has never been so engaged with regulators.

A coordinated regulatory shift

The crypto sprint builds on the Working Group’s digital asset policy report, which recommended that Congress close existing regulatory gaps by granting the CFTC authority to oversee spot markets for non-security digital assets. The report also called on both the SEC and CFTC to use their existing powers to immediately support digital asset trading at the federal level by providing clearer guidance on registration, custody, trading and recordkeeping. It further encouraged the use of tools like safe harbours and regulatory sandboxes to help innovative financial products reach consumers.

The CFTC’s crypto sprint complements the SEC's own initiative, "Project Crypto". With growing alignment between the two agencies, US digital asset regulation is moving toward greater clarity that gives developers, businesses and consumers clearer rules and fewer barriers.

These coordinated efforts represent a clear departure from the skeptical stance of the previous administration. Under the Biden administration, the SEC pursued enforcement actions against several crypto exchanges (many of which have since been dropped). While not yet finalised, these new developments reflect the Trump administration's continued swift work to bring digital assets into the financial mainstream.

First published at www.bitsofblocks.io with Steven Pettigrove and Emma Assaf