SEC and CFTC sign agreement to coordinate crypto and market oversight

The SEC and the CFTC announced a new Memorandum of Understanding aimed at strengthening coordination between the two agencies and improving regulatory clarity for financial markets, including digital assets.

The agreement outlines how the agencies will collaborate on policymaking, oversight, examinations, and enforcement while sharing information and aligning regulatory definitions. Officials said the move is designed to reduce duplicative rules and provide clearer guidance to market participants.

“For decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions,” said SEC Chairman Paul Atkins. The updated agreement will help align regulatory definitions, coordinate oversight, and facilitate secure data sharing between the agencies, he said.

CFTC Chairman Michael S. Selig said the initiative reflects an effort to modernize regulatory frameworks as markets evolve. By coordinating oversight and eliminating overlapping rules, the agencies aim to provide more seamless supervision of financial markets, he said.

Alongside the agreement, the agencies launched a Joint Harmonization Initiative to advance coordinated oversight in areas where both regulators share authority. The effort will focus on clarifying product definitions, modernizing clearing and margin frameworks, streamlining regulatory reporting, and improving cross-market surveillance.

Officials said the initiative will also work toward developing a fit-for-purpose regulatory framework for crypto assets and other emerging technologies.

The Joint Harmonization Initiative will be co-led by Robert Teply from the SEC and Meghan Tente from the CFTC