SEC and CFTC Propose Harmonized Crypto Regulation

SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham announced a joint crypto regulation harmonization initiative on September 5, 2025, focusing on innovation exemptions for DeFi protocols.

This initiative aims to position the US as a global crypto leader by providing regulatory clarity, potentially impacting DeFi protocols and peer-to-peer crypto trading with increased market stability.

SEC and CFTC Announce Joint Crypto Initiative

SEC Chair Paul Atkins and CFTC Acting Chair Caroline D. Pham announced a joint initiative to harmonize crypto regulations. Their goal is to provide greater regulatory clarity and foster innovation within the digital asset space. This collaborative effort underscores the commitment of these agencies to support market development for digital assets in the U.S. According to Paul Atkins, “A key priority of my Chairmanship is clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law.”

The harmonization statement highlights the agencies’ focus on innovation exemptions for DeFi protocols and promoting self-custody as an American value. This aligns with the U.S.’s ambition to position itself as a global leader in crypto adoption and regulation.

Proposed Rules to Affect Crypto Asset Trading

The proposed regulations are likely to impact a wide array of digital assets, including spot cryptocurrencies and derivates like perpetual contracts traded through DeFi platforms. This move could lead to greater investor confidence and clarity within the market.

The joint proposal suggests expanding trading hours and clarifying prediction markets. Historical trends show similar initiatives have successfully integrated new trading practices, suggesting potential growth and stability in crypto markets under these proposed frameworks.

Experts Forecast Enhanced U.S. Crypto Leadership

Past regulatory initiatives by the SEC and CFTC have paved the way for the current harmonization proposal. Previous agendas have successfully addressed market concerns, establishing a precedent for effective regulatory updates in the crypto industry.

Experts from Kanalcoin highlight that successful regulation could strengthen U.S. leadership in global crypto markets. If past trends serve as a guide, the proposed regulatory clarity will further the adoption and integration of digital currencies in traditional financial markets.