Crypto Lawyers Push Back on “Vague” SEC & CFTC Statement

• The SEC and CFTC issued a joint statement permitting registered exchanges to trade “certain spot commodity” cryptos
• However, crypto lawyer Bill Morgan called it a “nothingburger,” as crypto exchanges remain unregulated
• The statement fails to define “commodity,” leaving the core “security vs. commodity” debate unresolved

The SEC and CFTC issued a new joint statement on crypto, but prominent crypto lawyers are already calling it a “nothingburger.” 

While regulators are celebrating the move as a major step forward, legal experts like Bill Morgan argue it does little to solve the core uncertainty facing the U.S. crypto industry, as it fails to provide a clear regulatory framework. 

The Official Statement: What Did the Regulators Actually Say?

The joint statement, issued on September 2, appears to be a move to clarify the roles of the two agencies, but its language is deliberately vague.

What does the statement permit?

The regulators clarified that “duly registered” exchanges are not prohibited from facilitating the trading of “certain spot commodity products.” The statement also highlighted a “coordinated approach” to promote trading venue choice for market participants.

How are the regulators spinning this?

SEC Chairman Paul Atkins called the statement a “significant step forward,” while Acting CFTC Chairman Caroline D. Pham highlighted the “synergy” between the two agencies. 

Both credited the Trump administration’s “collaborative approach” to making America the “crypto capital of the world,” a sign that the White House continues to push for the CFTC to lead on digital assets.

The Reality Check: Why Crypto Lawyers Are Skeptical

Despite the positive spin, legal experts who work in the crypto space are not impressed.

What is Bill Morgan’s main criticism?

Bill Morgan’s point is simple: the statement is a distraction. He argues that the core problem is that crypto exchanges themselves remain unregulated, and the agencies have still not provided a clear framework for them to operate.

Related: SEC Pseudo-Outsources Crypto ETF Decisions to CFTC Through Futures Rule

Does this solve the “security vs. commodity” debate?

No. The statement deliberately refers to “certain spot commodity products” without defining what they are. This leaves exchanges in the same uncertain position as before, having to guess which assets the SEC might later classify as securities. This has led to a situation where the SEC has effectively pseudo-outsourced key decisions to the CFTC.

Related: SEC to Lose Crypto Oversight? Trump Pushes CFTC to Lead Digital Assets