- The SEC and CFTC have signed a memorandum of understanding to improve cooperation on financial market regulation, including digital asset oversight.
- The agreement outlines joint policymaking, enforcement coordination and information sharing to reduce regulatory overlap.
- A Joint Harmonization Initiative will examine areas such as product classification, reporting rules and surveillance to support a clearer crypto framework.
Two of the United States’ primary financial regulators have agreed to work more closely together on digital asset oversight after signing a memorandum of understanding aimed at improving regulatory coordination. The agreement between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) sets out a framework for joint action as crypto markets continue to expand.
The memorandum establishes procedures for cooperation across policymaking, supervisory activities, enforcement and regulatory examinations. It also includes commitments to share information and align certain regulatory definitions in order to provide clearer guidance for market participants.
Officials said the arrangement is intended to encourage lawful innovation while preserving strong protections for investors and maintaining the integrity of financial markets. The agencies also pledged to cooperate in addressing potential barriers that could affect the introduction of digital asset products.
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Clearer Rules for Emerging Technologies
SEC Chairman Paul Atkins said previous regulatory disputes and overlapping registration obligations between the agencies had historically hindered innovation and driven some companies to operate outside the United States. The new agreement, he said, will help streamline coordination and regulatory oversight between the two bodies.
CFTC Chairman Michael S. Selig said financial markets constantly adapt to investor demand and regulatory structures must evolve accordingly. By harmonising aspects of their regulatory frameworks, the agencies aim to provide more comprehensive and consistent oversight of markets that fall within both regulators’ jurisdictions.
The agencies also introduced a Joint Harmonization Initiative to support their collaboration. The programme will examine areas such as product classification, regulatory reporting, clearing and margin systems, and cross-market surveillance where both regulators share responsibilities.
Officials said the initiative will also contribute to developing a regulatory framework tailored to crypto assets and other emerging technologies.
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