Signage is seen outside of the US Commodity Futures Trading Commission (CFTC) in Washington, D.C., U.S., August 30, 2020. REUTERS/Andrew Kelly/File Photo
(Reuters) -The U.S. Commodity Futures Trading Commission (CFTC) said on Monday it would allow trading of spot crypto asset contracts that are listed on a futures exchange registered under the regulator.
The CFTC, which regulates U.S. derivatives markets, will enable immediate trading of digital assets at the Federal level in coordination with the Securities and Exchange Commission's "Project Crypto", CFTC acting chairman Caroline Pham said.
The CFTC invited stakeholders to comment on how to list the spot crypto asset contracts in a designated market.
"This is a significant development, not just for the U.S. but for global markets," said Saad Ahmed, headofAsia Pacific at Gemini.
"It brings crypto one step closer to the structure and standards of traditional markets - an important shift that could drive broader participation from institutions and more sophisticated market participants globally."
The digital assets industry has seen progress this year under U.S. President Donald Trump, as bills like the GENIUS Act and CLARITY Act have provided more regulatory certainty.
Shortly after taking office in January, Trump ordered the creation of a crypto working group tasked with proposing new regulations, making good on his campaign promise to overhaul U.S. crypto policy.
SEC Chair Paul Atkins last week outlined several pro-crypto initiatives, including directing staff to develop guidelines to determine when a crypto token qualifies as a security, and proposals for various disclosures and exemptions.
The two regulators' approach marks a significant victory for the crypto industry, which has long advocated for tailored regulations.
"The hope continues to be that a broader range of assets beyond bitcoin and ethereum entrench themselves on U.S. venues over the next 24 months, and moves like this ultimately help alongthatprocess," said Joseph Edwards, head of research at Enigma Securities.
Trump's embrace of digital assets is in stark contrast to former President Joe Biden's regulators, who, in a bid to protect Americans from fraud and money laundering, cracked down on the industry.
The Biden administration sued exchanges Coinbase, Binance, and dozens more, alleging they were flouting U.S. laws. Trump's SEC has since dropped those cases.
Bitcoin, the world's largest cryptocurrency, last traded 0.68% lower at $114,077.05 on Tuesday, though it has risen more than 20% for the year so far.
Ether fell 2% to $3,621.70.
(Reporting by Pritam Biswas in Bengaluru and Rae Wee in Singapore; Editing by Leroy Leo and David Holmes)
