US CFTC opens crypto rule-making to the public

The Commodity Futures Trading Commission (CFTC) has launched the latest phase of its “crypto sprint”, a federal push to shape the future of digital asset regulation in the United States.

This step is part of President Donald Trump’s broader plan to make the US a leader in the global cryptocurrency economy.

The new phase, which began on Thursday, invites public feedback from anyone involved in the crypto space. The comments will be open until 20 October 2025.

The goal is simple: get as many voices involved as possible to help design new rules for crypto markets, especially around spot trading and more complex financial products. 

According to Acting CFTC Chair, Caroline D. Pham, the aim is to build smart regulations that support innovation while reducing risk.

“This is the beginning of a Golden Age of innovation. We need to act now and get the framework right”, Pham said in her announcement.

Spot crypto trading, where users buy and sell digital currencies directly, is now a top priority for the agency. This area has been loosely regulated for years, and the CFTC wants to bring it under clearer federal control. 

Along with that, the Commission will also look at leveraged and margined trading, which involves borrowing funds or using financial tools to increase exposure. These types of trades often target retail users and come with higher risk.

The CFTC is aiming to create clear, consistent rules that apply nationwide, moving away from the current patchwork of state-level oversight. 

This is part of a larger effort to provide better protections for investors, especially in areas where there has been little oversight until now.

Working with the SEC and White House on a shared vision

The new sprint builds on previous efforts launched earlier this month. The first sprint, which started on 1 August 2025, focused on enabling the trading of spot crypto asset contracts on exchanges registered with the CFTC. 

A second sprint followed on 4 August, setting the foundation for broader market rulemaking. Now, the third phase expands further.

It brings in the full list of recommendations from the President’s Working Group on Digital Asset Markets, a 166-page report that outlines what federal agencies should do to support the crypto space. 

The CFTC is one of several agencies mentioned in that report, alongside the Treasury and the Securities and Exchange Commission (SEC).

Of the 18 official recommendations in the report, two are directly aimed at the CFTC. One asks the agency to clarify how cryptocurrencies can be treated as commodities and explain how DeFi (decentralised finance) firms can follow existing rules. 

The other suggests reviewing existing laws to see if they can be updated to support blockchain-based derivatives.

The remaining 16 recommendations involve cooperation between the CFTC and other federal agencies. Pham made it clear that collaboration with the SEC and the White House will be key to making progress.

“The Administration has made it clear that enabling immediate trading of digital assets at the Federal level is a top priority”, she said.

The SEC has already started working on its own crypto project, called “Project Crypto”. SEC Chair, Paul Atkins, said the project will help modernise securities laws and bring more financial activity onto blockchain networks.

Together, the CFTC and SEC are now working in parallel to support Trump’s vision of US leadership in the digital asset world.

“The Trump Administration has ushered in a new dawn for crypto. It’s up to market participants to seize this opportunity and be part of the Golden Age of innovation”, Pham said.

What the consultation means for the crypto community

The most important part of the new sprint is public involvement. For the first time, crypto users, companies, developers, and investors are being asked to directly shape how US rules for digital assets are written.

The CFTC’s official website now has a portal open for comments. Anyone can submit suggestions, concerns, or ideas about how crypto markets should be regulated. The consultation runs until 20 October 2025.

This is a rare chance for the public to have a say in national crypto policy. Depending on the feedback, the outcome could go in several directions.

If regulators get it right, the US could end up with clear, reliable rules that make it easier for crypto companies to operate and for big investors to enter the market. This could boost adoption and help the industry grow.

But if the rules are too strict, especially on things like leverage or access for retail traders, it might have the opposite effect. Some projects may move overseas, and innovation could slow down.

“It begins to address this state-by-state fragmentation and long-time occupancy of this grey zone”, said public affairs lawyer and CEO of AR Media Consulting, Andrew Rossow.

Rossow sees the move as part of a broader federal strategy. “The CFTC appears to be trying to lay a regulatory bedrock by seeking to establish a unified, federal-level spot market for crypto assets”, he said.

He believes retail investors will benefit from stronger protections. “Once the federal handcuffs are lifted, we can restore trust in a space long tarnished by poor oversight”, Rossow added.

The CEO of peer-to-peer crypto platform NoOnes, Ray Youssef, agrees that these efforts are not just about the US.

“The US is asserting control over digital dollars and setting the standards others may follow. Countries that once hesitated may be pushed to adopt similar frameworks or risk falling behind”, he said.

Despite the push for reform, the CFTC is currently dealing with leadership uncertainty. The agency only has two active commissioners, Caroline Pham and Kristin N. Johnson. Johnson is expected to leave her post later this year.

Trump’s nominee for CFTC Chair, Brian Quintenz, has not yet been confirmed. A Senate vote on his appointment was delayed by the White House back in July. 

Several crypto advocacy groups have called for his swift confirmation, saying the agency needs a full leadership team to carry out its work.

The CFTC has made it clear, however, that the sprint will continue. The fourth and final phase of the crypto sprint is expected to come later this year. 

That phase will take all the public feedback collected and turn it into formal rules and supervisory guidelines.

The agency’s wider goal is to build a national framework that supports digital assets, ensures market integrity, and strengthens US leadership in crypto.

So far, the Commission has kept to a tight schedule. The first sprint was launched at the start of August, the second just three days later. Now, with the third sprint under way, the final step is expected soon.

The public consultation window is the biggest opportunity yet for the crypto world to weigh in. Submissions can be made until 20 October 2025 via the CFTC’s official site.