- SEC & CFTC aim for listed spot trading and tokenized collateral by end-2025
- Shutdown since Sept 30 slows proposals and staff work at both agencies
- Congress drafts a bill; Senate meets with Coinbase, Kraken, Circle, Ripple
Federal regulators, the SEC & CFTC, are setting firm goals to complete key crypto initiatives by the end of 2025, focusing on listed spot crypto trading and tokenized collateral. Acting CFTC Chair Caroline Pham stated on X that these priorities remain central to the commission’s plan, despite the ongoing federal funding lapse that began on September 30. SEC Chair Paul Atkins echoed this timeline, confirming that “Project Crypto,” the agency’s innovation exemption plan, is still expected to launch this year. Both regulators operate under a White House directive calling for clearer rules separating securities from non-securities in digital assets. While staffing limits caused by the shutdown have slowed progress, both agencies continue coordinating efforts with Congress and the administration to finalize a unified crypto framework before the year’s end.
SEC & CFTC year-end 2025 priorities and timelines
Federal market regulators described what they want done by the end of 2025 in clear terms, focusing on listed spot crypto trading and the treatment of tokenized collateral on regulated venues. Caroline Pham posted that the CFTC intends to prioritize “listed spot crypto trading” and “tokenized collateral” by the end of the year, tying the objectives to a push the agency previewed in August for “trading spot crypto asset contracts” under a new initiative. The SEC & CFTC timelines align with a White House policy track published over the summer that asked the SEC to consider safe harbors for crypto and a fit-for-purpose exemption from registration for securities distributions, while also urging Congress to grant the CFTC authority over spot markets in non-security digital assets. Paul Atkins said he wants innovation steps, described inside the commission as “Project Crypto,” to reach completion by late 2025, including an innovation exemption that the SEC could apply to narrow, testable distributions. Both agencies tie their calendars to concrete milestones, public postings, and interviews across Tuesday and Wednesday, with leaders repeating that the goal remains the end of the year.
Shutdown pressure, staffing limits, and operational impact
A continuing government shutdown that began after Congress missed a funding deal on September 30 now shapes the capacity of each commission to draft and circulate proposals, schedule votes, and prepare adopting releases. SEC Chair Paul Atkins told CNBC that staff cannot develop proposals or advance several items the commission hoped to roll out by year-end, setting a practical cap on meetings, inter-divisional review, and rule text edits. The SEC & CFTC both face the same constraint during a funding lapse, since only excepted functions continue, which reduces momentum behind market-structure work and any collateral frameworks tied to tokenization. Agency leaders still aim to hit the end-of-2025 window; they argue that once Congress restores funding, teams can return to drafting, economic analysis, and coordination with their counterparts so that listed spot crypto trading and tokenized collateral items do not slip. That return would also allow staff to match the White House calendar and sync with pending legislative steps now moving in the Senate.
SEC & CFTC and the White House policy track
Over the summer, the White House asked the SEC to weigh a safe-harbor model for crypto and to consider a fit-for-purpose exemption from registration for securities distributions, while also calling for the CFTC to receive authority to regulate spot markets in non-security digital assets. The SEC & CFTC responses run through internal initiatives that both chairs highlighted this week: the CFTC’s spot crypto asset contracts effort and the SEC’s “Project Crypto,” which aims at an innovation exemption that could be in place by the end of 2025. These requests and initiatives sit on the same timeline as the broader legislative push that the administration wants finished by the end of this year, creating a two-track path where Congress writes statutory guardrails and the commissions finalize scoped exemptions, definitions, and market-structure rules. That coordination matters because clear boundaries between securities and non-securities, plus a direct grant of spot authority to the CFTC, would let each agency focus on supervision and enforcement inside a defined perimeter. It also reduces overlap when firms handle tokenized collateral or pursue listed spot products under exchange rulebooks.
Capitol Hill meetings and the industry roster at 2 p.m. ET
Lawmakers continue to draft a bill that would set rules for the crypto market at large, and both Senate parties held separate meetings with industry participants on Wednesday to test language and surface operational issues. A Senate aide listed attendees for the Republican session at 2 p.m. Eastern, including Coinbase CEO Brian Armstrong, Kraken CEO Dave Ripley, Circle executive Heath Tarbert, Ripple Chief Legal Officer Stuart Alderoty, and Solana Policy Institute President Kristin Smith, alongside others engaged in policy work. The SEC & CFTC chairs signaled that statutory clarity would support their projects, since legislation can codify what is a security, what is not, and how to harmonize oversight with fellow regulators. Industry meetings add concrete examples of how firms list spot markets, hold customer funds, and move tokenized collateral across venues, which helps drafters refine treatment of clearing, custody, and disclosures. The White House urged Congress to deliver a bill for signature by the end of the year, so the schedule now pairs public agency signals on Tuesday and Wednesday with a fixed 2 p.m. ET stakeholder block that feeds edits into the next draft.
Policy details, market structure steps, and what changes first
Near-term change rests on whether Congress restores funding and passes a bill that assigns the CFTC clear authority over spot markets in non-security digital assets, while giving the SEC room to pilot a limited exemption for securities distributions. If those steps land on time, the SEC & CFTC could move from planning to formal text and adopt complementary rules that list spot crypto trading under exchange procedures and set tokenized collateral treatment under clearing or margin frameworks. The CFTC’s August signal about a spot contracts initiative hints at how futures-style risk management could adapt to cash markets, while the SEC’s innovation exemption would create a measured route for projects to test distribution without bypassing core investor protections. Coordination also covers definitions that teams can read consistently, so firms know which filings and controls apply before they launch. When the shutdown ends, staff can restart the grind of drafting, cost-benefit analysis, public comment processing, and finalization, which keeps the end-of-2025 target credible so long as meetings and votes resume at pace.
Conclusion
The SEC & CFTC continue to push for critical milestones before the end of 2025, despite facing internal slowdowns caused by the ongoing federal shutdown. Their focus on enabling listed spot crypto trading and formalizing the handling of tokenized collateral reflects a coordinated agenda that responds to White House recommendations issued earlier this year. Project Crypto at the SEC and the CFTC’s initiative on spot contracts illustrate agency-level movement that complements congressional efforts to pass a comprehensive bill by year-end. The presence of top crypto executives at Senate meetings underlines industry engagement with regulatory reform at a pivotal moment. The SEC & CFTC frameworks will gain strength from legislative clarity that defines jurisdiction, differentiates between asset classes, and provides tailored registration pathways. These elements are essential to avoid fragmented oversight and allow each commission to operate with confidence. If funding resumes and legislation advances, agencies can complete proposal drafting and begin implementing the changes they committed to finishing in 2025.
Disclaimer
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