On September 5th, the US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly issued two statements.

One statement indicated an increase in collaborative efforts to support the development of areas such as crypto assets, DeFi, prediction markets, perpetual contracts, and portfolio margining; subsequently, they aim to enhance the competitiveness of US markets through regulatory coordination, narrowing regulatory gaps, extending trading hours, and utilizing innovative exemption measures. The other statement预告 announced that the two agencies will hold a joint roundtable on September 29th, planning to discuss topics including "considering harmonizing definitions of products and venues, simplifying reporting and data standards, adjusting capital and margin frameworks, and leveraging each agency's existing exemptive authorities to create a coordinated innovation exemption."

As two crucial regulatory bodies within the US economic system, this move by the SEC and CFTC may signal new upcoming actions in US crypto regulation. Odaily Planet Daily will provide a brief analysis of this event and its连带 potential impacts in this article.

Core Goal of SEC & CFTC Joint Regulation: Make American Capital Great Again

Both of the joint statements issued by the US SEC and CFTC mentioned "ensuring US leadership in global capital markets." This shows that the core objective of this joint regulatory effort remains part of the Trump administration's "America First" policy. Specifically, the main impacts of the joint regulation are reflected in the following aspects:

1. Opening the US market to crypto trading platforms.

   Based on previous information and the joint statement from the two agencies, the US CFTC plans to issue guidance "clarifying registration rules for foreign trading platforms"; prediction market Polymarket, approved by the CFTC, is returning to the US market; the US SEC and CFTC will study the introduction of perpetual contracts in the US market, enabling traders to participate in related products previously mainly available overseas on domestic platforms. Simultaneously, the two agencies also plan to explore directions such as 24/7 markets, prediction markets, portfolio margin optimization, and DeFi innovation exemptions.

   Undoubtedly, since Trump took office, the US government has reversed its previous "isolationist" stance towards the cryptocurrency industry, planning to fully open the US market and attract numerous crypto trading platforms to participate in building the US crypto economy.

    

2. Further attracting overseas capital liquidity.
   The CFTC's plan to clarify registration rules for Foreign Boards of Trade (FBOT) is not only expected to attract industry infrastructure like trading platforms to the US market but also likely to facilitate large-scale inflows of funds, capital, and liquidity from US users and global crypto users through this channel. US crypto market participants, including Gemini, Kraken, and Coinbase, will also借此 thereby reach more users and liquidity globally.

   As acting CFTC Chairman Caroline D. Pham previously stated: "This is a way to bring crypto activity 'back to the US,' activity that had flowed out due to enforcement-focused regulation under Biden, while also reaffirming the regulatory framework that has existed since the 1990s. For US traders, this means legal access to more global liquidity; for the crypto industry, this is another step towards regulatory clarity and an action under the Trump administration's 'crypto sprint strategy.'"

3. Reducing regulatory costs and improving enforcement efficiency.
   According to existing US law, the SEC and CFTC are both financial regulators, but their sources of authority differ: the SEC is primarily established and enforces based on the Securities Act of 1933 and the Securities Exchange Act of 1934, while the CFTC exists and regulates based on the Commodity Exchange Act (CEA). In other words, the SEC primarily regulates the securities market, emphasizing investor protection and disclosure requirements, with penalties including civil fines, injunctions, and criminal referrals; the CFTC focuses on commodity futures and derivatives markets, emphasizing risk management and anti-manipulation, often involving leveraged trading and high-risk derivatives. Joint regulation will, on the basis of reducing the compliance burden (e.g., margin capital locking) for crypto platforms, further clarify the boundaries of their respective authorities, thereby reducing regulatory costs and improving enforcement efficiency—akin to "rendering unto God the things that are God's, and unto Caesar the things that are Caesar's."

4. Encouraging innovation while strengthening risk control.
   The introduction of multiple potential policies and benefits will further encourage the innovative development of local US crypto enterprises. In particular, 7*24 hour trading, portfolio margining, and DeFi innovation exemptions are expected to inject new momentum into the development of DeFi in the US financial sector. Furthermore, both agencies emphasized "meeting investor and customer protection standards," and subsequent policies may be introduced to further strengthen risk control and reduce market manipulation. In the long run, this move may effectively reduce the current disorderly and chaotic price manipulation and speculation events in the crypto market.

After Crypto IPOs, Crypto Derivatives May Become the Next US Innovation Frontier

Following the completion of landmark crypto industry IPOs such as "crypto asset management giant" Galaxy, "first stablecoin stock" Circle, and crypto trading platform Bullish, the joint regulatory statement issued by the US SEC and CFTC suggests that crypto derivatives and DeFi may become the next frontier for US crypto innovation.

Previously, constrained by the high-pressure regulatory stance in the US, many cryptocurrency exchanges and projects avoided the US user market. The joint statement from the SEC and CFTC this time signals a new round of regulatory direction: encouraging rapid development and prosperity of the US crypto financial market, launching more innovative products that meet exemption requirements based on risk control and investor protection.

On one hand, "US native crypto projects" like WLFI, Uniswap, Solana, and Moonpay may usher in a new round of expansion and favorable regulatory policies.

On the other hand, cryptocurrency index funds and related targets, including Coinbase, Gemini, Kraken, Kalshi, Polymarket, Bitcoin spot ETFs, and Ethereum spot ETFs, will welcome more active traders and a new wave of liquidity.

It is worth mentioning that this joint regulation may open up imagination for the US financial market to activate traditional financial market liquidity through the crypto economic system. Traditional fund institutions, including traditional index funds, state pension funds, and university endowment funds, are expected to conduct more crypto asset allocations through this.

Combined with Nasdaq's previous statement about tightening regulations related to listed companies establishing cryptocurrency reserves, it is becoming increasingly difficult to achieve the effect of "soaring both in coin and stock" simply through a "coin hoarding strategy" via shell companies. Hope now lies in more standardized and innovative crypto financial product innovation and liquidity introduction.

Furthermore, although "the first BTC hoarding stock" Strategy met all the hard criteria for inclusion in the S&P 500 but was not selected, acting CFTC Chairman Caroline Pham previously described this as part of "Bitcoin's 'Uberization' process," meaning digital assets are integrating into the US economic system to the point of being difficult to remove, highlighting the CFTC's emphasis on crypto-concept stocks.

Unlike the internet economy, which has permeated all aspects of people's lives, the cryptocurrency industry is currently limited to financial investment. However, with the development of various sectors such as PayFi, DeFi, prediction markets, and tokenized US stock markets, the crypto economy will further mainstream on the basis of ETF funds.

Appendix: Relevant Timelines for US CFTC Regulatory Measures:

• August 21: US CFTC Acting Chairman Caroline D. Pham announced that the CFTC will launch the next phase of its crypto sprint plan to implement recommendations from the President's Working Group on Financial Markets report on digital assets. This plan focuses on advancing digital asset spot trading at the federal level and synergizes with the SEC's "Crypto Project" activities, responding to President Trump's call to promote US leadership in the crypto field.

• September 5: The US CFTC and SEC jointly issued a statement proposing to promote joint regulation of crypto and derivatives.

• September 29: The joint CFTC-SEC roundtable will be held at the SEC headquarters at 100 F Street NE, Washington, D.C., and will be open to the public for in-person attendance, simultaneously webcast on the SEC website; a recording of the roundtable will be published on the SEC website later. Agenda and participant details can be found here.

• According to previous remarks by US CFTC Acting Chairman Caroline D. Pham, the CFTC will broadly solicit opinions from stakeholders, covering topics such as leverage, margin, and financed retail trading, and will open a channel for public comment submissions until October 20.