U.S. Cryptocurrency Authorities Race to Establish Route for International Dominance

The Commodity Futures Trading Commission (CFTC) has entered the second stage of its "Crypto Sprint" project, an initiative designed to speed up regulatory clarity and supervision in the U.S. digital asset sector. Acting Chair Caroline D. Pham highlighted that this effort is in step with the White House’s Digital Assets Report, which calls for a cohesive regulatory structure to strengthen the U.S.’s leadership in the crypto industry. The CFTC is inviting public feedback on a range of market topics, such as how tokens are categorized, standards for asset custody, and the integration of decentralized finance (DeFi), with comments accepted until October 20, 2025 CFTC Press Release [ 1 ].

This phase builds on the CFTC’s earlier work, which centered on enabling continuous trading and perpetual derivatives on markets registered with the agency. Since January 2025, the CFTC has retired outdated advisories and issued fresh guidance to encourage innovation. The current phase broadens the focus to include risks tied to leveraged, margined, and retail-oriented trading—areas that have drawn regulatory scrutiny. Pham stated that the CFTC’s goal is to foster innovation while managing risks, working in partnership with the Securities and Exchange Commission (SEC) and industry participants .

An essential aspect of the Crypto Sprint is the CFTC’s partnership with the SEC, as recommended by the White House Report, which urged both agencies to coordinate their regulatory approaches. SEC Chair Paul Atkins recently indicated that most tokens should be treated as commodities rather than securities, a perspective that could alter the regulatory landscape. Aligning with the CFTC’s commodity-based approach may help reduce overlapping regulations and offer clearer rules for exchanges and token issuers .

The CFTC is seeking public comment on several important subjects, including:

- under the Commodity Exchange Act (CEA) and securities laws.

- of digital assets, including haircuts for registered intermediaries.

- , including registration requirements for decentralized autonomous organizations (DAOs) and smart contracts.

- , such as using distributed ledger technology for recordkeeping .

Feedback from the first phase was mostly positive, with 19 responses supporting the CFTC’s use of its current powers to broaden spot trading. Nonetheless, some respondents warned that regulatory measures should work alongside, rather than replace, possible congressional action on market structure reforms. The CFTC’s new initiative demonstrates a forward-looking approach as Senate debates on crypto regulation continue, including the House’s Digital Asset Market Clarity Act CFTC Press Release [ 1 ].

The potential impact on the market is considerable. More precise token classification could determine whether projects must comply with securities regulations or fall under CFTC commodity rules. For example, tokens identified as securities might face stricter disclosure and registration obligations, while those classified as commodities could see a smoother path to exchange listings. Regulation of stablecoins is also a key focus, with both the CFTC and SEC expected to clarify oversight roles for interest-bearing and asset-backed tokens. Staking services, which have previously been targeted by the SEC, may also be subject to new regulations, affecting platforms such as Lido and

The CFTC’s open comment period, running until October 20, 2025, offers a crucial chance for stakeholders to help shape future regulations. By collaborating with innovators, investors, and legal professionals, the agency intends to develop rules that encourage growth while addressing systemic risks. This marks a departure from the enforcement-heavy tactics of previous years, indicating a move toward more structured cooperation.

The launch of the Crypto Sprint comes at a time of heightened policy activity. The White House Report, published in July 2025, highlights the need to standardize definitions and practices across regulatory bodies. Both the CFTC and SEC are expected to present initial recommendations by the end of 2025, potentially setting the stage for new congressional laws. This schedule shows that the U.S. is making regulatory transparency a priority to attract institutional investment and maintain its competitive position in the global crypto market .