CFTC Launches "Crypto Sprint" New Phase, Opening Compliance Pathway for Instant Digital Asset Trading

Under the strong push of the Trump administration, the United States is accelerating the integration of crypto assets into the mainstream financial system. On August 1, the Commodity Futures Trading Commission (CFTC) officially launched a regulatory initiative called "Crypto Sprint," proposing on August 5 to include spot crypto assets in CFTC-registered designated contract markets (DCMs) for compliant trading. Subsequently, on August 21, the next phase of the "Crypto Sprint" initiative was advanced, prioritizing achieving instant settlement of digital assets at the federal level as a key task, focusing on issues related to stakeholders engaging in leveraged, margin, or financing retail transactions on CFTC-registered exchanges. This move not only breaks the long-standing regulatory gray area of the spot market but also heralds a clear, viable compliance path for the Web3 industry.

CFTC Acting Chairman Caroline Pham publicly stated, "Under the strong leadership of President Trump, the CFTC is actively advancing federal-level spot trading of digital assets and coordinating closely with the SEC's 'Crypto Plan.'" This statement sends a strong signal: U.S. regulation is shifting from "defensive suppression" to "institutional acceptance," providing unprecedented compliance opportunities for Web3 infrastructure such as DeFi, stablecoins, and on-chain derivatives.

Spot Contract Legalization: The Institutionalization Starting Point of the Crypto Market

For a long time, the U.S. regulatory system has lacked unified oversight of crypto spot trading. Trading of assets like BTC and ETH has mostly been concentrated on overseas platforms or unlicensed domestic exchanges, with regulatory gaps making it challenging to protect investor rights and keeping many institutional funds in a wait-and-see mode.

The "Crypto Sprint" launched by the CFTC is precisely aimed at addressing this pain point. One of its core objectives is to facilitate the legal listing of non-securities crypto asset spot contracts on CFTC-registered DCMs. By approving these platforms to host spot crypto trading, the CFTC is providing the market with a compliant alternative path, replacing the long-standing reliance on unlicensed or offshore trading platforms—platforms that have gradually lost institutional trust amid incidents like the FTX liquidation (2021) and ongoing regulatory troubles with Binance. Therefore, this policy signifies to institutional investors a more legitimate, transparent, and fair entry route into crypto assets, clearing obstacles for them to allocate digital assets on a large scale.

According to the CFTC, Section 2(c)(2)(D) of the Commodity Exchange Act clearly requires that any commodity trading involving leverage, margin, or financing must take place on a registered DCM. This provision provides a solid legal foundation for the legal listing of crypto spot contracts and brings much-needed regulatory certainty to the market. Within this framework, we may witness the emergence of "Coinbase-like" centralized exchanges or on-chain derivative protocols such as dYdX, obtaining compliance operational approval through DCM registration.

Moreover, this policy has also opened up a compliant gateway to cryptocurrency assets for traditional financial institutions. Represented by the Chicago Mercantile Exchange (CME) as a DCM participant, which has long had a complete infrastructure for BTC and ETH futures markets, once the spot contracts are approved, it will provide institutional investors with a one-stop cryptocurrency asset trading gateway from futures to spot, accelerating the entry of traditional capital.

The core objective of the new phase of the "Crypto Sprint" plan launched on August 21 is to fill the gaps in the digital asset market in market structure, custody arrangements, stablecoin regulation, and anti-money laundering standards. Andrew Rossow, CEO of AR Media Consulting, pointed out in an interview with Decrypt that the CFTC is attempting to lay the regulatory foundation by establishing a unified federal-level cryptocurrency asset spot market to address the long-standing interstate fragmentation and regulatory gray areas. He believes that these measures are part of a "federal legitimacy strategy" aimed at driving foundational reform. Once the so-called "federal handcuffs" are removed, retail investors are expected to regain trust under stronger protection, thus repairing the market environment damaged by regulatory absence.

It is expected that the remaining "Sprint Plan" will focus on addressing unresolved issues such as DeFi supervision, bank access, tax clarity, and institutional coordination.

SEC and CFTC Join Forces: Regulatory Coordination Bringing Certainty

One of the biggest regulatory challenges in the U.S. cryptocurrency market in recent years has been the overlapping and blurred delineation of responsibilities between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). Project teams often have to deal with compliance pressure from the SEC while also taking into account the CFTC's commodity trading rules, falling into the dilemma of "regulatory sandwich" or "duplication enforcement," which consumes resources and increases uncertainty.

However, the "Crypto Sprint" this time has clearly sent a signal: the CFTC will establish a close cooperation mechanism with the SEC to collaboratively clarify the legal nature of cryptocurrency assets (securities or commodities), custody standards, and trading compliance requirements, thus providing market participants with a unified, predictable compliance path.

The "sprint" not only symbolizes an accelerated regulatory pace but also signifies a shift in regulatory thinking—from passive defense to active cooperation. For Web3 projects, this is no longer just a "regulatory observation period" but an unprecedented window of institutional co-creation. The CFTC has publicly sought market feedback on the "listing of spot cryptocurrency asset contracts on a Designated Contract Market (DCM)" proposal, with a deadline of August 18. If participants can submit feedback in a timely manner, they may not only be able to avoid future regulatory blind spots but also potentially influence the specific direction of the rules.

At the same time, the SEC's "Project Crypto" is also highly aligned with the "Crypto Sprint," attempting to create a unified federal regulatory framework, clarify the boundary between security-type and commodity-type crypto assets, and promote the development of a "Super App" structure that can trade multiple asset classes simultaneously. If this concept is implemented, future trading platforms will be able to legally offer a "one-stop" crypto financial service under a single license, including stocks, Bitcoin, stablecoins, staking services, and more.

Related reading: "What Does Trump Want to Speculate on, Seen from the SEC's Project Crypto"

SEC Chairman Paul Atkins and Commissioner Hester Peirce have also publicly expressed their support, calling it a "historic turning point in promoting the on-chainization of the financial system," and stating that they will accelerate the establishment of specific rules in key areas such as stablecoin regulation, crypto asset custody, and compliant token issuance.

This dual-track regulatory approach is expected to end the confusion in the United States over the classification of crypto assets as "securities" or "commodities," setting a clear and replicable compliance model for the world.

More importantly, this means that Web3 projects can finally avoid "stepping on landmines and violating regulations" and can truly integrate into the mainstream financial system through a clear registration process, compliant custody, and auditing systems, achieving the alignment of on-chain assets with real-world finance.

Summary

Over the past week, the U.S. government has sent unprecedentedly strong signals in the crypto asset field: the White House officially released the "Digital Asset Strategy Report," the SEC launched "Project Crypto," the CFTC entered a new phase of "Crypto Sprint," making achieving instant settlement of digital assets at the federal level a top priority, and publicly soliciting opinions to promote the compliant listing of spot contracts; meanwhile, the White House made a rare statement, prohibiting banks from discriminating against crypto companies—not just "easing restrictions," but rather a complete policy shift.

Once upon a time, the SEC was the biggest regulatory shadow over crypto projects, but today, we see it joining forces with the CFTC to establish a unified regulatory framework for Web3. What is visibly evident is a historic structural shift: from ambiguity to clarity, from suppression to support, from the gray area to federal legislation.

This time, the sprint is not just for regulators — it's for every Crypto Builder.