SEC and CFTC Join Forces on Crypto Trading Rules
New guidance gives exchanges a clearer path to list spot crypto products
Welcome to the Wednesday edition of the Crypto In America newsletter!
What you’ll read: Wall Street’s top cop and its sister agency are finally aligned on crypto trading, Gemini is set to list on the Nasdaq next week, and American Bitcoin joins the podcast.
Crypto’s de facto regulators want to show the market that they are finally on the same page when it comes to trading digital assets.
On Tuesday, SEC and CFTC staff issued a rare joint statement clarifying that registered exchanges can offer certain spot crypto products, including those with leverage, margin, or financing for retail traders.
Exchanges now have a clear path to list spot crypto products on U.S. futures markets, foreign boards, and SEC-registered national securities exchanges.
The statement also clarifies trading mechanics: clearinghouses can partner with custodians to manage customer accounts, exchanges are encouraged to share pricing information for better market oversight, and spot trade data should be made public for transparency. Regulators emphasized fair and orderly markets, efficient trading, and healthy competition, while welcoming innovation, as long as investors are protected.
While these actions were not explicitly prohibited before, former leadership at both agencies muddied the waters, making it difficult for market participants to discern what was tolerable.
“Mostly through enforcement actions, the agency sent the message that this sort of innovation would not be well received by regulators,” a CFTC spokesman told Crypto In America. “This staff statement clarifies that not only is this activity permissible under current law, but also that the agencies are willing to work with registrants to help properly bring them to market.”
Why it matters: After years of tension and regulatory uncertainty, the SEC and CFTC are signaling that they’re now aligned and open to a collaborative relationship with the crypto industry.
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Gemini Picks Nasdaq for Its Public Debut
Gemini will officially debut on the Nasdaq under the ticker GEMI next Friday, September 12, targeting a $2.22 billion valuation and becoming the third U.S. crypto exchange to go public after Coinbase and Bullish.
The Winklevoss-founded firm plans to sell 16.67 million shares at $17 to $19 each, aiming to raise up to $317 million, with Goldman Sachs, Morgan Stanley, Cantor, and Citigroup serving as lead underwriters. Gemini will be the smallest of the three exchanges to tap the public markets, reflecting its smaller revenue base, with 2024 revenue climbing to $142.2 million, up from $98.1 million the previous year. For comparison, Coinbase delivered $1.5 billion in revenue in Q2 this year.
Going public would be a milestone for the Winklevoss twins, who launched Gemini in 2014 as a regulation-first alternative to offshore exchanges like Mt. Gox, where they had been early Bitcoin buyers in 2012.
American Bitcoin Preps Its Own IPO
Crypto In America caught up with Asher Genoot, CEO of Hut 8 and board member of the mining firm American Bitcoin, last month at the Wyoming Blockchain Symposium in Jackson Hole.
In this episode, we get into de-banking, U.S. regulations, shifting government attitudes on crypto, working with the Trump family, building American Bitcoin, and the risks that come with running a Bitcoin Treasury company.
And like Gemini, American Bitcoin could debut on the Nasdaq this month.
Remember, new editions of the Crypto In America newsletter drop every Monday, Wednesday and Friday at 7AM EST.
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