SEC, CFTC Pledge Closer Cooperation, ‘Harmonization’ on Crypto and Market Oversight

The Securities and Exchange Commission (SEC) and the Commodity Futures Trade Commission (CFTC) said on Monday they will work closer together to reduce duplication and regulatory conflict, starting with the crypto market.

The pledge emerges after the joint regulation roundtable in Washington, D.C., and shows what leaders described as a turning point in American financial surveillance.

“For too long, the SEC and CFTC operate in parallel lanes, frequently conflicting with each other, causing the American people to carry the costs of replicating, delays and uncertainty. That era is behind us.” “We are creating new courses that solidify America’s position as the world’s financial leader.”

Alex Urbelis, legal counsel and chief information security officer for Ethereum Name Service Decryption The lack of clarity and dueling rulebooks was stagnant Blockchain Although there have been US innovations over the years, it has warned that achieving greater harmony between the two regulators is not always easy.

“Collaboration between market regulators is a great sound bite for cryptography, but the actual work and the will of Congress need to remove statutory duplication,” Urbelis said, “The balance between investor protection and innovation is not easy and despite the best regulatory intent, it will always be a push-and-pull game.”

Crypto Policy Shift

The announcement follows a shift in Washington’s stance towards the crypto market over the past year, and prompts regulators to ease restrictions on digital assets with the return of the Trump administration.

In early 2025, the SEC and CFTC raised proposals to expand market trading hours to a 24/7 schedule, introduce regulatory exemptions for decentralized finance projects, and allow Spot Crypto assets to trade directly on US exchanges. At the same time, the SEC has rejected multiple enforcement actions against crypto companies, including Kraken, Cumberland and Consensys, showing a broader pivot from the aggressive crackdown that defined the Gensler era.

SEC Commissioner Mark Uyeda further highlighted the need for a clearer line of surveillance as the market evolves. “Innovation rarely respects jurisdictions and often does not fit the legal distinction between “securities” and “products” written several decades ago,” he said.

“Today, we have the opportunity to avoid past mistakes and instead, together, build a regulatory architecture that is not in conflict with our market.”

The SEC has previously pledged to implement an “innovation waiver” for certain digital assets by the end of the year as part of its SEC initiative “Project Crypto” to reduce regulatory burdens.

CFTC acting chair Caroline Fam repeated her call for collaboration, pushing back criticism of her agency’s work. “In recent years, the dynamics between our agencies could be described as one of competition rather than collaboration. That’s not what this administration wants. That’s not what we want,” she said. “The CFTC is alive and we need more FUD on what’s going on on the other side of town.”

Meanwhile, the CFTC under Pham has increased the pace of enforcement and rulemaking actions.