Centralized control over distributed transactions

The U.S. Commodity Futures Trading Commission (CFTC) has announced that it will allow spot crypto asset transactions on exchanges under its jurisdiction. This announcement has been made in coordination with the Securities and Exchange Commission (SEC).

So, what does this mean?

Until now, spot crypto transactions in the US have been conducted through state-licensed exchanges and platforms operating under unclear or fragmented regulatory frameworks. In short, the situation varied from state to state.

The CFTC, despite having exercised its authority over crypto derivative markets such as Bitcoin futures and options for a long time, did not have clear authority over the spot market for digital commodities. However, this situation has changed.

What is the current situation?

The Futures Brokerage Firm registered with the CFTC and the Authorized Contract Markets will now be able to offer spot trading with digital commodities starting with Bitcoin and Ethereum. These trading venues must meet federal standards for market oversight, custody, capital requirements, customer protection principles, and fraud prevention compliance. The relevant authority may also potentially expand liquidity and institutional participation by paving the way for clearing organizations to support digital asset transactions.

Thus, the fragmented control and management came to an end, and a centralized management and implementation emerged. The CLARITY and GENIUS Laws were already signs of this centralization.

What is the purpose?

CFTC aims to modernize the U.S. Securities Laws and market structure for blockchain-based assets. This goal was already part of a well-known major crypto project.

While the SEC holds authority over digital asset securities and tokenized financial instruments, the CFTC will oversee digital commodities and spot markets. At the same time, both agencies will advance through joint rule-making to resolve gray areas in asset classification, custody, and market operations. Thus, there will be no overlap in the work and processes of these two agencies.

Additionally, spot transactions have been brought into compliance with federal law, creating a consistent, reliable, and scalable regulatory framework.

What will the change of authority or centralization provide?

As the rate of corporate adoption increases, consumer protection will simultaneously become more effective. Increasing market integrity is also another expected benefit.

Exchanges may have to restructure their operational processes to comply with CFTC and SEC regulations. Token projects, especially in light of recent lawsuits and evolving classification standards under the CLARITY Act, should reassess whether assets are characterized as commodities or securities.

Although questions remain regarding the application, scope, and coordination with state regulators, this action shows that digital assets are no longer outside traditional market infrastructure.

Published: August 20, 2025 18:59