The CFTC’s “Project Crypto” was announced by Acting Chair Caroline Pham, and its main goal is to implement key recommendations from a Trump executive order, including clarifying crypto classifications, integrating decentralized finance (DeFi) entities into existing frameworks, and collaborating with other agencies on joint rulemaking and innovation sandboxes. Meanwhile, SEC Chair Paul Atkins is spearheading a “reshoring” push to attract crypto businesses back to the US. This pro-crypto pivot already drove major players like Nexo, OKX, Bitmain, and Kraken to expand or relocate operations in the US. US Crypto Sprint Gains Speed The US Commodity Futures Trading Commission (CFTC) launched an ambitious “crypto sprint” that is specifically aimed at implementing key crypto-related recommendations that were issued by the Trump administration last week. Acting CFTC Chair Caroline Pham announced the initiative, known as “Project Crypto,” on Friday and said that the agency is committed to fulfilling President Trump’s directive to establish the United States as a global leader in cryptocurrency innovation. The initiative will be carried out in close coordination with Securities and Exchange Commission (SEC) Chair Paul Atkins and Commissioner Hester Peirce. The push stems from an executive order that was issued by Trump in January, which led to the formation of a Working Group on Digital Asset Markets. This group has since released a report outlining 18 recommendations, two of which directly apply to the CFTC. These include developing new guidance on classifying cryptocurrencies as commodities, setting registration standards for decentralized finance (DeFi) entities, and exploring the integration of crypto into the current regulatory framework for entities already overseen by the CFTC. Another recommendation calls for updating rules to support blockchain-based derivatives. The remaining recommendations involve collaborative efforts with other financial agencies, particularly the SEC and the Treasury. These include creating a joint rulemaking process to provide clear regulatory guidance and potentially launching a regulatory sandbox for crypto innovation. A longer-term objective is to allow regulated firms to offer a range of services through unified digital platforms. Additionally, the report calls on Congress to clarify the division of responsibilities between the CFTC and the SEC. It specifically proposes that the CFTC be granted explicit authority to oversee spot markets for non-security digital assets. Pham stated that the CFTC has already taken meaningful steps toward crypto regulatory clarity. This includes engaging directly with crypto industry leaders and repealing outdated guidance that no longer reflects the digital asset industry. The agency also concluded consultations regarding 24/7 trading for derivatives and the introduction of perpetual contracts, which received support from various people in the crypto industry. CFTC withdrawing Staff Advisory No. 23-07 earlier this year Adding momentum to these efforts, President Trump nominated Brian Quintenz to lead the CFTC. However, his nomination hearing was recently postponed at the request of the White House, leaving his confirmation pending. Overall, the CFTC’s regulatory push could have profound implications for the US crypto landscape. Atkins Leads Crypto Reshoring Push Meanwhile, crypto companies are making a return to the United States as federal officials create a much friendlier regulatory environment. In a speech that was delivered Thursday at the America First Policy Institute, SEC Chair Paul Atkins urged the country to “reshore the crypto businesses that fled,” which also forms part of President Donald Trump’s strategy to reestablish the US as a leading global hub for cryptocurrency innovation. Treasury Secretary Scott Bessent echoed this sentiment the next day by declaring that the nation has entered the “golden age of crypto.” He also encouraged entrepreneurs to launch their projects and hire talent in the country. This policy pivot already began to produce tangible outcomes. Companies that previously scaled back or moved offshore are now either returning or expanding their US operations. In late April, Bulgaria-based Nexo announced its reentry into the American market after years of absence, and openly attributed the move to improved regulatory clarity. Soon after, Netherlands-based derivatives exchange Deribit was reportedly eyeing a US launch, while London’s Wintermute, a leading algorithmic trading firm, opened a New York office. The trend continued in June, when Seychelles-based centralized exchange OKX relaunched in the US and established a new headquarters in San Jose, California, after a $500 million settlement with American regulators. In July, Chinese mining giant Bitmain revealed plans to open its first US-based ASIC production facility by early 2026 and said it will set up a new US headquarters by the end of the third quarter, likely in Texas or Florida. This followed earlier reports that other major mining companies like Canaan and MicroBT are also relocating production operations to the US. HQ relocation announcement from Kraken Domestic firms are also seizing the moment. Kraken moved its global headquarters to Wyoming in June, due to the state’s supportive regulatory landscape. Meanwhile, MoonPay, which was originally based in Miami, relocated to New York and announced in June that it secured licenses to operate in all 50 states. Together, these developments prove that there is a growing confidence in the US as a viable and supportive environment for the crypto industry’s next phase of growth.
