# SEC and CFTC Harmonize Digital Asset Regulation, Announce Innovation Exemptions ∞ Regulation

**Published:** 2025-09-17
**Categories:** Regulation

---

![The image displays a series of sleek, white, modular block-like structures, forming a chain-like assembly against a light grey background. A vibrant blue energy burst, accompanied by numerous fragmented particles, emanates from a central connection point between two of these blocks, suggesting intense activity and data flow](https://incrypthos.com/wp-content/uploads/2025/09/modular-blockchain-architecture-cryptographic-data-flow-processing.jpeg)

![Two white, futuristic modular units, resembling blockchain infrastructure components, interact within a dynamic, translucent blue medium. A brilliant blue energy field, bursting with luminous bubbles, signifies robust data packet transfer between them, emblematic of a high-speed data oracle feed](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-protocol-interoperability-cross-chain-liquidity-flow.jpeg)

## Briefing

The U.S. Securities and Exchange Commission (SEC) and the [Commodity Futures Trading Commission](https://incrypthos.com/markets/kraken-launches-perpetual-futures-platform-expanding-derivatives-access/) (CFTC) have launched a significant harmonization initiative, issuing joint statements and an advisory to provide critical regulatory clarity for digital asset markets. This collaborative effort, driven by the President’s Working Group on Digital Asset Markets report, aims to foster innovation through “innovation exemptions” and streamline frameworks, notably reaffirming the Foreign Board of Trade (FBOT) registration process to legally onshore trading activity, with a joint agency roundtable scheduled for September 29, 2025.

![A striking, abstract crystalline form with vibrant blue internal illumination and a clear central sphere dominates the frame. This intricate object is centered against a smooth, light grey background, highlighting its complex, faceted structure](https://incrypthos.com/wp-content/uploads/2025/09/cryptographic-primitive-encased-in-decentralized-ledger-protocol-architecture.jpeg)

## Context

Prior to these announcements, the digital asset industry in the United States operated within a fragmented and often ambiguous regulatory landscape, characterized by an “unprecedented regulation by enforcement approach.” This environment created significant compliance challenges, particularly for foreign entities seeking to serve U.S. customers and for innovators developing new trading mechanisms like perpetual contracts and [DeFi protocols](https://incrypthos.com/news/defi-protocols/), hindering market development and driving activity offshore.

![A clear, faceted, crystalline object rests on a dark surface, partially enclosing a dark blue, textured component. A central metallic gear-like mechanism is embedded within the blue material, from which a black cable extends across the foreground towards a blurred, multi-toned mechanical device in the background](https://incrypthos.com/wp-content/uploads/2025/09/transparent-protocol-core-engine-digital-asset-interoperability.jpeg)

## Analysis

This regulatory action significantly alters existing compliance frameworks by explicitly acknowledging the legality of facilitating leveraged, margined, or financed retail commodity transactions on digital assets through registered exchanges. The reaffirmation of the FBOT framework provides a clear, established pathway for non-U.S. platforms to gain direct market access for U.S. persons, thereby integrating offshore liquidity into a regulated domestic environment. Furthermore, the commitment to explore “[innovation exemptions](https://incrypthos.com/news/innovation-exemptions/)” for peer-to-peer and DeFi trading signals a proactive shift, potentially reducing the regulatory burden on novel product structuring and expanding market optionality for participants. This strategic alignment between the SEC and CFTC aims to enhance market integrity through coordinated oversight and data sharing, necessitating a review of existing operational controls and reporting standards for all regulated entities.

![A striking render showcases a central white sphere with segmented panels partially open, revealing a complex, glowing blue internal structure. This intricate core is composed of numerous small, interconnected components, radiating light and suggesting deep computational activity](https://incrypthos.com/wp-content/uploads/2025/09/distributed-ledger-node-core-interoperability-protocol-mechanism.jpeg)

## Parameters

- **Agencies** ∞ U.S. Securities and Exchange Commission (SEC), U.S. Commodity [Futures Trading Commission](https://incrypthos.com/markets/kraken-launches-perpetual-futures-platform-expanding-derivatives-access/) (CFTC)

- **Key Initiatives** ∞ Harmonization Statement, [Spot Commodity](https://incrypthos.com/news/spot-commodity/) Joint Statement, FBOT Advisory, Spring 2025 Regulatory Agendas

- **Jurisdiction** ∞ United States

- **Targeted Entities** ∞ [Digital asset market](https://incrypthos.com/news/digital-asset-market/) participants, foreign boards of trade, DeFi protocols, national securities exchanges, designated contract markets

- **Core Regulatory Shift** ∞ Providing clarity and potential “innovation exemptions” to [onshore trading activity](https://incrypthos.com/insights/bitcoins-price-soars-network-activity-lags-is-the-rally-sustainable/) and foster digital asset innovation

- **Key Date** ∞ September 29, 2025 ([Joint agency roundtable](https://incrypthos.com/regulation/sec-cftc-clarify-joint-oversight-for-crypto-spot-markets/))

![A highly detailed, metallic blue robotic arm or intricate mechanical structure is prominently displayed, featuring interconnected components, visible wiring, and a central lens-like sensor. The polished surfaces reflect light, highlighting the advanced engineering and precision of its design](https://incrypthos.com/wp-content/uploads/2025/09/modular-dlt-architecture-powering-autonomous-smart-contract-execution.jpeg)

## Outlook

The immediate next phase involves the September 29, 2025, joint agency roundtable, which will further detail harmonization priorities and potential “innovation exemptions.” This collaborative stance sets a significant precedent, indicating a more integrated regulatory approach for digital assets within the U.S. that could influence other jurisdictions, particularly as the CFTC explores equivalency for MiCA-authorized platforms. The emphasis on legally onshoring [trading activity](https://incrypthos.com/insights/bitcoins-price-soars-network-activity-lags-is-the-rally-sustainable/) is poised to attract capital and innovation back to the U.S. potentially leading to a more robust and transparent domestic digital asset market.

![A close-up view highlights a pristine, white and metallic modular mechanism, featuring interlocking components and a central circular interface. The deep blue background provides a stark contrast, emphasizing the intricate details of the polished silver elements and smooth, rounded white casings](https://incrypthos.com/wp-content/uploads/2025/09/modular-blockchain-node-precision-actuator-system-architecture.jpeg)

## Verdict

**This coordinated regulatory action by the SEC and CFTC marks a pivotal shift toward pragmatic clarity, strategically positioning the U.S. to lead global [digital asset innovation](https://incrypthos.com/regulation/senate-committee-unveils-landmark-digital-asset-innovation-act/) by integrating existing market structures with forward-looking exemptions.**

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## Glossary

<a href="https://incrypthos.com/markets/kraken-launches-perpetual-futures-platform-expanding-derivatives-access/" class="glossary-item-box">

## commodity futures trading commission 

Kraken's new perpetual futures platform enhances market access and refines risk management protocols for broader participant engagement. </a><a href="https://incrypthos.com/news/defi-protocols/" class="glossary-item-box">

## defi protocols 

Definition ∞ DeFi protocols are decentralized applications that provide financial services without traditional intermediaries. </a><a href="https://incrypthos.com/news/innovation-exemptions/" class="glossary-item-box">

## innovation exemptions 

Definition ∞ Innovation exemptions are provisions within regulatory frameworks that allow for the testing or deployment of new technologies or business models under specific conditions. </a><a href="https://incrypthos.com/markets/kraken-launches-perpetual-futures-platform-expanding-derivatives-access/" class="glossary-item-box">

## futures trading commission 

Kraken's new perpetual futures platform enhances market access and refines risk management protocols for broader participant engagement. </a><a href="https://incrypthos.com/news/spot-commodity/" class="glossary-item-box">

## spot commodity 

Definition ∞ A 'Spot Commodity' is a raw material or agricultural product that is traded on the open market for immediate delivery. </a><a href="https://incrypthos.com/news/digital-asset-market/" class="glossary-item-box">

## digital asset market 

Definition ∞ The digital asset market is a global marketplace where various forms of digital property, including cryptocurrencies, tokens, and other digital collectibles, are bought, sold, and traded. </a><a href="https://incrypthos.com/insights/bitcoins-price-soars-network-activity-lags-is-the-rally-sustainable/" class="glossary-item-box">

## onshore trading activity 

Despite record Bitcoin prices, core network usage metrics like daily fee revenue have plummeted to multi-year lows, indicating a disconnect. </a><a href="https://incrypthos.com/regulation/sec-cftc-clarify-joint-oversight-for-crypto-spot-markets/" class="glossary-item-box">

## joint agency roundtable 

This joint guidance establishes a coordinated regulatory approach, offering critical clarity for market participants navigating U. </a><a href="https://incrypthos.com/insights/bitcoins-price-soars-network-activity-lags-is-the-rally-sustainable/" class="glossary-item-box">

## trading activity 

Despite record Bitcoin prices, core network usage metrics like daily fee revenue have plummeted to multi-year lows, indicating a disconnect. </a><a href="https://incrypthos.com/regulation/senate-committee-unveils-landmark-digital-asset-innovation-act/" class="glossary-item-box">

## digital asset innovation 

This legislative update refines asset classification and inter-agency oversight, directly impacting operational compliance frameworks for digital asset entities. </a>

**Tags:** [Market Integrity](https://incrypthos.com/news/market-integrity/), [SEC](https://incrypthos.com/news/sec/), [Spot Commodity](https://incrypthos.com/news/spot-commodity/), [Custody Rules](https://incrypthos.com/news/custody-rules/), [Asset](https://incrypthos.com/news/asset/), [Spot](https://incrypthos.com/news/spot/)	

## Discover More

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### [SEC Withdraws Coinbase Enforcement Action Signaling Policy Shift](https://incrypthos.com/regulation/sec-withdraws-coinbase-enforcement-action-signaling-policy-shift/)
![A prominent Application-Specific Integrated Circuit ASIC sits on a dark circuit board, its metallic housing illuminated by blue light. Numerous silver traces extend from the central processor, connecting to glowing blue components, indicating intense data transfer. This advanced hardware is vital for high-performance cryptographic computations, enabling rapid transaction validation and maintaining network consensus within decentralized ledger technology DLT. It represents critical node infrastructure, essential for securing digital asset processing and efficient smart contract execution, driving the global hash rate for distributed computing.](https://incrypthos.com/wp-content/uploads/2025/09/advanced-asic-hardware-for-decentralized-ledger-technology-processing.jpeg)

The SEC's withdrawal from key crypto enforcement actions mandates a strategic re-evaluation of compliance frameworks for digital asset platforms.

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### [Avantis Launches Derivatives Platform on Base, Initiates AVNT Token Airdrop](https://incrypthos.com/web3/avantis-launches-derivatives-platform-on-base-initiates-avnt-token-airdrop/)
![A sophisticated, translucent deep blue in-ear monitor showcases its intricate internal architecture, resembling a complex smart contract network. Polished metallic elements function as secure node connectors, facilitating robust data stream integrity. The transparent outer shell hints at blockchain transparency, revealing the underlying cryptographic algorithms at play. This Web3 audio device embodies a decentralized autonomous organization DAO for personalized sound, ensuring immutable ledger fidelity. Its design suggests a hardware wallet for auditory digital assets, integrating seamlessly into a tokenized economy.](https://incrypthos.com/wp-content/uploads/2025/09/transparent-web3-audio-gateway-immutable-ledger-integration.jpeg)

Avantis introduces a robust derivatives trading platform to the Base ecosystem, enhancing capital efficiency and expanding sophisticated financial primitives for users.

- 
### [Venus Protocol User Phished, Lazarus Group Recovers $13.5 Million](https://incrypthos.com/security/venus-protocol-user-phished-lazarus-group-recovers-13-5-million/)
![A close-up view reveals a sophisticated blockchain infrastructure component featuring transparent, textured blue elements resembling frozen liquid or advanced coolant. These components are integrated with sleek metallic mechanisms, accented by subtle blue luminescence, suggesting a high-performance system. This design likely facilitates optimal thermal management crucial for maintaining validator node efficiency and ensuring robust transaction throughput. The intricate assembly hints at a specialized unit within a decentralized network, potentially supporting cryptographic hashing operations or smart contract execution, vital for maintaining data integrity and network consensus across a distributed ledger.](https://incrypthos.com/wp-content/uploads/2025/09/liquid-cooling-protocol-optimizing-decentralized-ledger-technology-performance.jpeg)

A sophisticated phishing attack compromised user delegation, underscoring critical risks in off-chain security and user education.

- 
### [JPMorgan Expands Institutional Blockchain Offerings with Tokenized Deposits and Collateral](https://incrypthos.com/adoption/jpmorgan-expands-institutional-blockchain-offerings-with-tokenized-deposits-and-collateral/)
![A sophisticated watch movement showcases intricate mechanical gears and components alongside a vibrant blue, semi-circular module embedded with visible circuit board traces. This visual metaphor represents the integration of traditional corporate mechanisms with advanced digital ledger technology. The mechanical elements symbolize established off-chain infrastructure, while the blue module signifies on-chain cryptographic protocols and smart contracts, illustrating a seamless hybrid system for decentralized physical infrastructure networks or tokenized asset management.](https://incrypthos.com/wp-content/uploads/2025/09/hybrid-mechanical-digital-ledger-technology-protocol-interoperability.jpeg)

JPMorgan's strategic embrace of tokenized deposits and real-world asset collateral redefines institutional finance, optimizing liquidity and operational efficiency across traditional markets.

- 
### [Crypto Market Dips as Investors Await Fed Rate Cut Decision](https://incrypthos.com/markets/crypto-market-dips-as-investors-await-fed-rate-cut-decision/)
![A highly detailed, metallic-blue and silver geometric construct, possibly a cryptographic module or validator node, floats centrally. Its intricate design features layered secure enclaves and embedded faceted blue elements, symbolizing encrypted data units or tokenized assets. This structure suggests advanced hardware wallet capabilities for cold storage or a component within a decentralized infrastructure. The background displays blurred, luminous blue spheres, representing distributed ledger technology DLT nodes or blockchain network data points, emphasizing trustless system operations and immutable ledger integrity. The composition highlights protocol layer security.](https://incrypthos.com/wp-content/uploads/2025/09/secure-enclave-cryptographic-module-for-decentralized-network-validation.jpeg)

The crypto market is seeing a slight dip today as investors cautiously await the US Federal Reserve's interest rate decision.

- 
### [JP Morgan BlackRock Tokenization Visa USDC Cross-Border Payments](https://incrypthos.com/adoption/jp-morgan-blackrock-tokenization-visa-usdc-cross-border-payments/)
![Intertwined translucent conduits, filled with vibrant blue light or fluid, suggest dynamic data or energy transfer within a complex system. White, frosted textures on the conduit surfaces evoke cryptographic security layers or cooling mechanisms for high-throughput operations. Metallic connectors anchor these structures, symbolizing robust network nodes facilitating cross-chain liquidity and decentralized asset pipelines. This visual metaphor represents the intricate flow of tokenized data streams and smart contract execution across a distributed ledger technology framework, emphasizing scalability and interoperability in Web3 infrastructure.](https://incrypthos.com/wp-content/uploads/2025/09/blockchain-interoperability-protocol-data-stream-smart-contract-execution.jpeg)

Enterprises leverage blockchain for high-value asset tokenization and efficient cross-border settlement, optimizing capital flow and operational velocity.

- 
### [SEC Shifts to Crypto Rulemaking, Dismisses Coinbase Enforcement](https://incrypthos.com/regulation/sec-shifts-to-crypto-rulemaking-dismisses-coinbase-enforcement/)
![This macro view showcases a sophisticated network structure, likely representing a blockchain validation mechanism or decentralized finance DeFi infrastructure. Intricate metallic latticework, akin to a secure node or digital vault, cradles vibrant blue crystalline formations. These formations, suggestive of staked assets or encrypted data packets, are encased within a dense, fibrous matrix. The lighting emphasizes the depth and complexity, hinting at the underlying algorithms and consensus mechanisms, such as Proof of Stake PoS, powering these emergent digital economies and their associated tokenomics.](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-finance-protocols-utilizing-proof-of-stake-network-architectures.jpeg)

The SEC's pivot to formal rulemaking establishes a clearer operational framework, demanding proactive integration into existing compliance architectures.

- 
### [Nasdaq Seeks SEC Approval for Tokenized Stock Trading](https://incrypthos.com/adoption/nasdaq-seeks-sec-approval-for-tokenized-stock-trading/)
![A stark, minimalist composition features translucent geometric planes, resembling Layer 2 scaling solutions, partially obscured by granular white material, evocative of crypto winter conditions. A deep blue panel suggests digital asset liquidity pools, with the white powder hinting at cold storage security. The crystalline structures symbolize blockchain transparency and immutable ledger integrity, while the overall aesthetic reflects the precise cryptographic primitives underpinning decentralized finance DeFi. The scene conveys a sense of emerging protocol innovation within a bear market environment, emphasizing data integrity and network security.](https://incrypthos.com/wp-content/uploads/2025/09/transparent-protocol-layers-navigating-digital-asset-frost.jpeg)

Nasdaq's proposal integrates blockchain technology into core equity markets, enabling efficient, transparent trading of tokenized securities within established regulatory frameworks.

- 
### [SEC Closes Crypto.com Investigation without Enforcement Action](https://incrypthos.com/regulation/sec-closes-crypto-com-investigation-without-enforcement-action/)
![A sophisticated digital asset infrastructure displays intricate translucent blue conduits forming a complex network. Luminous blue elements represent active data packets, symbolizing on-chain transaction validation and cryptographic hashing processes. This visual metaphor illustrates the dynamic flow within a decentralized ledger technology system, emphasizing smart contract execution and block propagation across validator nodes. The design suggests advanced scalability solutions and interoperability protocols crucial for robust Web3 infrastructure, highlighting the underlying mechanisms of a high-throughput blockchain network.](https://incrypthos.com/wp-content/uploads/2025/09/decentralized-ledger-architecture-visualizing-on-chain-transaction-flow.jpeg)

The SEC's decision to close the Crypto.com investigation without penalties signals a critical shift, impacting compliance frameworks for digital asset exchanges.

**Tags:** [Asset](https://incrypthos.com/news/asset/), [Assets](https://incrypthos.com/news/assets/), [CFTC](https://incrypthos.com/news/cftc/), [Compliance](https://incrypthos.com/news/compliance/), [Compliance Requirements](https://incrypthos.com/news/compliance-requirements/), [Cross-Border Frameworks](https://incrypthos.com/news/cross-border-frameworks/), [Custody Rules](https://incrypthos.com/news/custody-rules/), [DeFi](https://incrypthos.com/news/defi/), [DeFi Protocols](https://incrypthos.com/news/defi-protocols/), [Digital Asset](https://incrypthos.com/news/digital-asset/), [Digital Asset Market](https://incrypthos.com/news/digital-asset-market/), [Digital Asset Markets](https://incrypthos.com/news/digital-asset-markets/), [Digital Assets](https://incrypthos.com/news/digital-assets/), [Futures Trading](https://incrypthos.com/news/futures-trading/), [Innovation](https://incrypthos.com/news/innovation/), [Innovation Exemptions](https://incrypthos.com/news/innovation-exemptions/), [Market](https://incrypthos.com/news/market/), [Market Integrity](https://incrypthos.com/news/market-integrity/), [Regulation](https://incrypthos.com/news/regulation/), [Regulatory Clarity](https://incrypthos.com/news/regulatory-clarity/), [Safe Harbors](https://incrypthos.com/news/safe-harbors/), [SEC](https://incrypthos.com/news/sec/), [Securities](https://incrypthos.com/news/securities/), [Spot](https://incrypthos.com/news/spot/), [Spot Commodity](https://incrypthos.com/news/spot-commodity/), [Stablecoin Regulation](https://incrypthos.com/news/stablecoin-regulation/), [Trading](https://incrypthos.com/news/trading/), [Transfer Agents](https://incrypthos.com/news/transfer-agents/)

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**Original URL:** https://incrypthos.com/regulation/sec-and-cftc-harmonize-digital-asset-regulation-announce-innovation-exemptions/
