Main Points :
- CFTC’s flexible use of existing authority to accelerate digital asset regulation
- The “Genius Act” and stablecoin oversight under a dual banking paradigm
- Coordination between CFTC’s “Crypto Sprint” and SEC’s “Project Crypto” for swift action
- Broad stakeholder engagement through public comment campaign
- Encouraging foreign crypto firms to return via “FBOT” registration
- Tokenization pilots leveraging stablecoins as collateral
- The shrinking CFTC leadership and implications for rulemaking speed
1. Accelerating Regulation via Existing Authority
At the WebX2025 conference held in Tokyo on August 25–26, Acting CFTC Chair Caroline Pham emphasized the strategic use of the agency’s existing legal authority—rather than waiting for new legislation—to regulate digital assets swiftly. She explained that by leveraging mechanisms like Designated Contract Markets (DCMs), the CFTC can enable spot crypto trading on federally regulated platforms within the next 12 to 18 months. This approach avoids prolonged legislative processes and positions the U.S. to act decisively.
2. The “Genius Act” and Stablecoin Regulation under Dual Banking
Pham highlighted the recent passage of the Genius Act in the House, which aims to establish nationwide oversight of stablecoins. Under this Act, stablecoins would be classified into those issued by banks and those by non-banks, each subject to either state or federal approval—mirroring America’s dual banking system. She further noted the potential of stablecoins to serve as digital bearer instruments—akin to bearer securities—when used for payments or collateral.
3. Joint Regulatory Drive: “Crypto Sprint” & “Project Crypto”
To translate the President’s Working Group on Digital Asset Markets’ recommendations into policy, the CFTC launched its second “Crypto Sprint” on August 21, 2025, inviting public input on implementing spot trading, as well as questions related to leveraged, margined, or financed retail trading. Simultaneously, the SEC’s “Project Crypto” seeks to modernize securities regulation around digital assets. Together, both initiatives embody a synchronized push to deliver regulatory clarity and strengthen U.S. leadership in digital finance.
4. Inclusive Stakeholder Engagement: Public Comment by October 20
The CFTC is formally soliciting stakeholder feedback on all remaining recommendations from the Working Group report, offering a public comment window that extends to October 20, 2025. Through this inclusive outreach, the agency aims to balance innovation with investor protection, ensuring regulations are informed by industry, investors, and innovators.
5. Re-engaging Foreign Crypto Firms via FBOT Reminder
In a further stride, the CFTC reminded crypto companies that previously exited the U.S. market that they can re-enter and serve U.S. clients as Foreign Boards of Trade (FBOTs) if properly registered. This advisory underscores the regulator’s intention to make the U.S. crypto environment welcoming and accessible, without fundamental policy shifts—only requiring administrative registration under current frameworks.
6. Pioneering Tokenization: Stablecoins as Collateral
Earlier in the year, Pham championed a pilot idea that would allow stablecoins to be used as collateral within a tokenization sandbox, enabling experimentation with distributed ledger-based, non-cash collateral in regulated markets. This approach aims to boost operational efficiency without changing existing collateral rules—potentially unlocking new use cases in payments, clearing, or DeFi.
7. Shrinking Commission and Its Implications
As of September 3, 2025, the CFTC commission will be reduced to a single member—Acting Chair Pham—following the departure of Commissioner Kristin Johnson. The nominee for permanent Chair, Brian Quintenz, remains in confirmation limbo. While a single commissioner structure could accelerate decision-making, it also raises concerns about reduced deliberation and potential legal vulnerabilities
- Figure 1: “Timeline of U.S. Crypto Regulation Initiatives”
Conclusion
In summary, the CFTC under Acting Chair Caroline Pham is aggressively advancing a regulatory framework for digital assets by creatively deploying existing authority, rather than waiting for new legislation. The Genius Act’s stablecoin oversight, backed by a dual banking-type model, complements this strategy. Coordinated with the SEC’s Project Crypto, the CFTC’s Crypto Sprint initiatives underscore a synchronized federal effort to regulate the crypto ecosystem swiftly and sensibly. Inclusive public feedback, re-engagement of foreign crypto entities, and forward-thinking tokenization pilots reflect an innovation-centered yet pragmatic ethos. However, with the regulatory commission shrinking to a single member, the agency faces both opportunity for speed and challenges in ensuring robust, well-considered rulemaking. For practitioners, new tokens’ issuers, and infrastructure providers, these developments signal both regulatory openness and the urgency to engage with evolving policy—making now a pivotal moment in U.S. digital asset regulation.
