Regulators Transform Crypto Turmoil into a Cohesive Strategy for U.S. Innovation

The U.S. made a major advancement in crypto regulation in September 2025, as the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) held a joint roundtable that signaled a new era of unified digital asset oversight. Previously, the American crypto sector struggled with unclear and fragmented rules, which restricted progress and encouraged activity outside the country. With the rollout of cohesive regulations, the agencies intend to synchronize definitions, reporting protocols, and capital standards, aiming to build a safer and more consistent environment for investors. This regulatory overhaul is expected to reinforce America's standing as a digital asset powerhouse while addressing the unique risks posed by continuous trading and perpetual contracts.

Key topics at the roundtable included the move to 24/7 trading, the introduction of perpetual contracts to U.S. markets, and the creation of special regulatory exemptions for decentralized finance (DeFi) protocols. These initiatives fit into a broader push to modernize capital markets and keep pace with the rapidly changing world of digital assets. By trimming compliance expenses and removing overlapping requirements, regulators are taking steps to position the U.S. as a vibrant center for crypto development. The next roundtable, scheduled for September 29, 2025, will further clarify these objectives, with particular attention to harmonizing portfolio margining and enhancing international regulatory cooperation.

These regulatory advancements have already begun influencing the marketplace. Between late August and early September 2025, crypto investment funds saw $2.48 billion in new inflows, with Ethereum-related products leading the way. In this period,

ETFs attracted $1.08 billion, surpassing the $440.8 million that flowed into ETFs. This pattern highlights growing confidence among institutions in assets with regulatory clarity, especially as Ethereum’s ongoing upgrades align with the emerging oversight model. The market for tokenized real-world assets (RWAs) has also surged, expanding from $5 billion in 2022 to $24 billion by mid-2025. This expansion is being driven by streamlined reporting and the integration of DeFi, helping to bridge traditional financial systems with blockchain innovation.

These reforms are transforming both the DeFi landscape and the realm of tokenized assets. Platforms that once operated outside traditional regulatory boundaries due to decentralization are now being brought into a more practical framework that weighs innovation against risk. Both the SEC and CFTC have indicated a willingness to grant “innovation exemptions” to peer-to-peer trading protocols, giving developers room to create decentralized solutions within regulatory oversight. This is anticipated to fuel fresh DeFi activity, particularly among projects that use tokenized real-world assets to boost liquidity and capital efficiency. As a result, large institutions like

and are now looking at tokenizing assets such as infrastructure, real estate, and private equity to tap into decentralized financial markets.

However, these changes are not without obstacles. The expansion to 24/7 trading and adoption of perpetual contracts raises concerns about increased volatility and potential advantages for sophisticated institutional traders. Similarly, the rise of tokenized RWAs will require solid risk management strategies to guard against systemic threats. Regulators have stressed the importance of “fit-for-purpose” rules, showing their readiness to adapt to a fast-changing landscape. For investors, the best opportunities now lie in products that match the new regulatory standards, such as derivatives based on Ethereum, tokenized real-world assets, and DeFi platforms that use innovation exemptions.

The combined efforts of the SEC and CFTC are not just clarifying the rules, but also transforming the global competition in digital asset markets. With the U.S. taking an active regulatory approach, it is now poised to lead in an industry once driven by unregulated innovation. As the discussion continues at the September 29 roundtable, the emphasis will remain on balancing protections for investors with the support for innovation in a global, always-on market.