Project Crypto & the Crypto Sprint: A practical roadmap for U.S. crypto market

12 Sept

TL;DR

The United States is shifting its crypto regulatory approach from an enforcement-heavy towards a coordinated, technology-neutral, and activity-based framework. The SEC’s Project Crypto and the CFTC’s Crypto Sprint are leveraging existing statutory authorities to enable trading of certain spot crypto asset products, guided by the President’s Working Group (PWG) report on Digital Asset markets.

By addressing key challenges in crypto regulation, Project Crypto-Crypto Sprint aims to foster secure and efficient markets by delivering deliver regulatory clarity within 12–18 months. This initiative is part of a larger push supported by federal leadership to keep pace with rapid technological innovation while balancing investor protection and market integrity.

The US Approach: A simple market

The European Union’s Markets in Crypto-Assets (MiCA) regulation offers a comprehensive, technology-specific framework but introduces complexity and high compliance costs. CFTC Acting Chairman Caroline D. Pham has cautioned against replicating this model, warning of a “Dodd-Frank for crypto” that could stifle innovation with costly, bespoke requirements. Instead, the US is pursuing a simpler, more agile strategy:

Technology-neutral rules: Leverage existing frameworks like the Commodity Exchange Act and securities laws to avoid constant regulatory rewrites.
Activity-based oversight: Focus on the nature of transactions rather than creating new licensing categories, reducing barriers for startups and entrepreneurs.
Swift clarity: Deliver guidance, interpretations, and exemptive orders within 12–18 months to accelerate market participation without sacrificing protections.

This approach promises faster market access, lower compliance costs, and reduced cross-border friction, positioning the US to reclaim leadership in the $3 trillion spot crypto market.

Key Initiatives Driving Change

SEC’s Project Crypto

Launched in July 2025 by SEC Chairman Paul S. Atkins, Project Crypto is a Commission-wide effort to modernise securities regulations for on-chain markets. It aims to provide clear “rules of the road” for distributions, custody, and trading of crypto assets. By using interpretative and exemptive tools, the SEC is enabling issuers, trading venues, and intermediaries to operate within the securities framework while targeted rulemaking progresses. The initiative aligns with the PWG’s recommendations to foster innovation and bring crypto businesses back to the US.

CFTC’s Crypto Sprint

Announced by Acting Chairman Pham in August 2025, the Crypto Sprint is a fast-tracked program to implement PWG recommendations. Key actions include:

Public consultations: Completed or underway on listed spot trading, 24/7 trading, and perpetual derivatives to inform guidance.
Updated guidance: Withdrawal of outdated staff advisories and issuance of new interpretations to enhance clarity.
Innovation pilots: Exploration of tokenization and non-cash collateral to support risk-managed innovation.

These efforts leverage existing registration categories like futures commission merchants (FCMs), retail foreign exchange dealers (RFEDs), and designated contract markets (DCMs), allowing firms to participate without new authorisations.

SEC–CFTC joint Statement (September 2025)

In a landmark coordinated effort, the SEC and CFTC issued a joint statement affirming that current laws do not prohibit registered exchanges, such as national securities exchanges (NSEs), designated contract market (DCMs), or foreign boards of trade (FBOTs), from facilitating trading of certain spot crypto asset products, including some leveraged or margined retail transactions. The agencies are collaborating on:

Margin, clearing, and settlement: Supporting custodian-linked clearing models and partnerships with clearinghouses.
Market surveillance: Enhancing cross-venue information-sharing for reference pricing and robust oversight.
Transparency: Promoting public dissemination of trade data to support market integrity.
Fair and orderly markets: Ensuring competition and efficient execution across trading venues, including 24/7 operations where approved.

Cross-Border Cooperation: The US–UK corridor

To avoid market fragmentation, the US is prioritising international coordination, particularly with the UK. Through the US–UK Financial Regulatory Working Group and SEC–CFTC/UK roundtables, regulators are exploring substituted compliance and mutual recognition. This approach aims to create a coherent environment for firms operating across New York and London, simplifying venue access, custody, and risk management.

Core safeguards remain intact

The coordinated approach maintains robust protections to ensure market integrity and investor safety. Key safeguards include:

    
          Safeguard area
          Expectations
        
          Anti-fraud & manipulation
          Aggressive enforcement against scams, manipulation, and abusive practices.
        
          Retail protections
          Segregation of customer funds, conflict management, risk disclosures, and advertising standards.
        
          Market integrity
          Venue surveillance, cross-venue reference pricing, and public trade-data dissemination.
        
          Clearing & settlement
          Support for custodian-linked clearing and clear pathways for clearing organisations.
        
          Governance & transparency
          Documentation, record-keeping, and risk controls for registered venues and intermediaries.
        
          Operational resilience
          Principles of fair and orderly markets, efficient execution, and transparent operations.

Implications for market participants

The US approach to crypto regulation is deliberately simple: technology-neutral, activity-based, and built on existing authority. This change in policy avoids the need for constant regulatory overhauls to keep up with innovation, while reducing burdensome registration requirements that disproportionately impact smaller firms and startups. Instead, clarity can be delivered quickly through agency guidance.

For market participants, this translates into tangible opportunities: existing registration categories can be leveraged, cross-border pathways are opening, and timelines for regulatory clarity are measured in months rather than years. The US is poised on moving toward a framework that fosters competition, accelerates entry, and restores confidence that innovation can thrive within its regulatory perimeter.

How Braithwate can help

Navigating this transition requires converting regulatory clarity into actionable strategies. Braithwate offers expert guidance on licensing, authorisations, and cross-border market access across the US, UK, and EU. Our FintechXpndr (FXp) platform streamlines the licencing process by integrating authorisation workflows and documentation, managing the application process, operational set-up and compliance management all in one place, helping firms get licensed and launched faster, with less friction.