The U.S. Crypto Industry Faces Major Regulatory Shifts
In a pivotal moment for the U.S. cryptocurrency landscape, both the Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have announced initiatives poised to reshape the way digital assets are traded, classified, and governed.
CFTC Moves Toward Legal Spot Market for Crypto
The CFTC has launched a major push to legalize spot cryptocurrency trading on regulated derivatives exchanges (DCMs). Acting Chair Caroline Pham described the move as a straightforward step toward establishing federal oversight for spot digital asset trading.
Public comments are now open regarding proposed clarifications to Section 2(c)(2)(D) of the Commodity Exchange Act, which regulates leveraged or margin retail crypto trades. Additionally, feedback is being sought on Part 40, which governs how designated contract markets operate.
One key concern is how these proposals might interact with existing securities laws. The CFTC has specifically requested input on how the SEC’s jurisdiction may apply when a digital asset doubles as an investment contract.
Submissions will be accepted until August 18, as part of a broader CFTC strategy tied to recommendations from the Digital Assets Market Working Group, originally established under the Trump administration.
SEC Clarifies Stablecoin Classification Rules
Meanwhile, the SEC has updated its guidance on stablecoin accounting, allowing dollar-pegged tokens to be treated as cash equivalents, provided they meet certain criteria. To qualify, stablecoins must feature a guaranteed redemption mechanism and price stability backed by solid assets.
This update is part of Chair Paul Atkins’ larger strategy to streamline crypto regulations. His newly launched Project Crypto aims to modernize securities laws and enable U.S. financial markets to transition toward blockchain-based infrastructure.
Industry analysts from Bernstein called the SEC’s move “revolutionary,” with the potential to position the U.S. as the world leader in blockchain finance.
Fighting Debanking and Political Bias
Former President Donald Trump is reportedly preparing an executive order aimed at ending the “debanking” of crypto businesses by financial institutions. According to The Wall Street Journal, the order would compel regulators to investigate whether banks violated fair lending, consumer protection, or antitrust laws by denying services to crypto-related clients.
In cases of non-compliance, fines or legal actions could follow. Furthermore, agencies may be required to repeal internal policies that led to service denials, with serious offenses escalated to the Department of Justice.
The order also addresses politically motivated debanking, particularly targeting actions against conservative individuals or entities. While the timing of the executive order remains uncertain, insiders suggest Trump could sign it as early as this week.
Conclusion: A Defining Moment for U.S. Crypto Regulation
These coordinated steps from both the CFTC and SEC signal a significant shift in how digital assets will be handled in the United States. From stablecoin legitimization to a regulated spot trading environment, the framework for a safer, clearer, and more inclusive crypto market is taking shape. If enacted, these rules could catapult the U.S. into a leadership position in the global blockchain economy.
