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The following opinion editorial was written by Alex Forehand and Michael Handelsman of Kelman.law.
The CFTC outlines how current regulations cover digital assets
To her remarks On September 8, 2025, before the UK’s All-Party Parliamentary Group on Blockchain Technology, CFTC Chairman Caroline D. Fam covered everything from broad principles to targets. Pham framed the urgency that follows the president’s working group’s basic report, highlighting strategies to leverage existing laws and frameworks, and emphasized that there is no need for regulators to “reinvent the wheels.”
The first concrete initiative is CFTC Cipher Sprintaims to accelerate regulatory clarity by directly attracting market participants. Public consultations have already begun as comments have a deadline of October 20, 2025.
Complementing this, CFTC and SEC issued a Joint staff statement Current US law confirms that it does not prohibit registered exchanges (under the SEC or CFTC) to promote the trading of certain spot cryptographic products. Essentially, digital assets are now brought “within existing regulatory boundaries.” This benefits from decades of market integrity and investor protection.
However, the main measure that Pham unveiled is its intention to rely on an already existing transnational regulatory framework. CFTC can efficiently onshore non-US digital asset trading venues on land and field by utilizing mechanisms such as compliance alternatives, mutual recognition and passports.
This is followed by the recent CFTC Advisory It reaffirmed the long-standing registration and recognition framework for Structures Rooted in 1990s (FBOT) and expanded with clarity and applicability of the digital asset market. Commissioner Pham emphasized that this approach avoids delays and fragmentation and promptly imports land liquidity into the US market.
Fam noted that it demonstrates how the European Union’s MICA framework and other transnational regulatory regimes can be exploited rather than replicating existing international standards. She pointed out that MICA and related EU regulations already provide a comprehensive baseline for monitoring the digital asset market, highlighting the need for US regulators to consider mechanisms such as alternative compliance and mutual recognition to align with those frameworks.
By referring to MICA, Pham emphasized that the US does not need to “reinvent the wheels” if a reliable regulatory model is already implemented overseas. Instead, she proposed that by leveraging these regimes, the United States could quickly import proven safeguards, harmonize cross-border oversight and avoid the risk of regulatory arbitration while maintaining a room for domestic innovation.
Old Frameworksv. New Technology
This strategy raises essential questions. Should regulators adapt existing tools for digital assets or should new technologies demand new regulations?
On the other hand, using a fragmented approach with technology-neutral tools can overlook systemic vulnerabilities inherent in digital assets such as blockchain technology and immobilized smart contracts. They may also fail to grasp the distinction between centralized intermediaries and decentralized arrangements, particularly the complexity of multi-signature wallets, and the detention between the risks and liability inherent in self-compromising.
Meanwhile, existing frameworks are transnational regimes such as compliance and mutual recognition, which import specific regulations of digital assets from other jurisdictions. In fact, this means that rather than applying purely technology-neutral rules, the US already employs digital asset-specific frameworks developed overseas, such as MICA.
This cross-pollination will not overlook the unique features of blockchain technology (disparate custody, decentralized custody, and the absence of traditional intermediaries) and will allow the US to benefit from the regulatory model tested. Using known laws and enforcement machines allows regulators to act quickly. This frames the US as needed to avoid giving innovation to other jurisdictions.
However, this direction should not be read as a rejection of future regulations. Rather, it is a tWO Stage Strategy: First, enclosed digital assets within known frameworks. Second, craft target tools to monitor, learn, and refine by addressing gaps visible only through real applications.
Especially in SEC and CFTC announcement The plan to host a joint roundtable in late September could focus on potential legislative reforms and targeting exemptions. This means that even if existing frameworks are applied, regulators are preparing to adjust new rules to the reality of digital assets. The idea that this is just a temporary revision is further strengthened by public consultations already launched by the President’s working group, with a comment deadline set on October 20, 2025.
Pham’s speech to the UK All-Parliamentary Group on Blockchain Technology– Civil sprint spans, clarity of joint regulations with the SEC, leveraging the FBOT regime, and cross-border coordination have deliberately focused on using what is already necessary to bring pace and certainty to the digital asset market. Her refrain that regulators should not “reinvent the wheel” refrains from encapsulating this spirit in phrases that we all understand.
It is clear that this path offers immediate benefits. Avoid unnecessary delays while maintaining investor protection and legal clarity. However, lawyers and market participants should remain vigilant. As the digital asset ecosystem evolves, regulatory architectures, from programmable finance to decentralized governance, must be prepared to evolve in a variety of ways.
Kelman PLLC can continue to monitor the development of cryptographic regulations across its jurisdiction and advise clients navigate these evolving legal landscapes. For more information or consultation schedule, please contact us here.
This article was originally published on kelman.law.
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