In recent times, US regulators have been taking active measures to control the crypto market, evidenced by a joint statement from the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC).
Overview of the Joint Statement
The SEC and CFTC issued a joint statement this week announcing a coordinated effort to oversee and enable spot trading of cryptocurrencies in the US. The agencies clarified that existing law does not prohibit regulated US or foreign exchanges, including national securities exchanges, from listing spot crypto products, including those with leverage and margin features.
Response to Presidential Working Group Recommendations
This statement follows recommendations from the Presidential Working Group on Digital Assets, which urged regulators to provide clarity and maintain blockchain innovation within the United States. Regulators stated they are ready to review exchange filings, address questions on custody and clearing, and ensure new spot markets meet standards for transparency, surveillance, and investor protection.
Implications for the Crypto Market
While crypto exchanges like Coinbase and Kraken already offer spot trading, this statement signifies that traditional finance venues are not barred from listing similar products if they choose to pursue them. For now, the move reflects the view of SEC and CFTC staff only and does not change existing law.
In light of recent events, changes in the regulatory framework regarding spot crypto trading in the US can be anticipated. Stay tuned for updates in this area.
