- CFTC and SEC plan joint crypto oversight to reduce overlap and clarify market authority
- Regulators aim to define crypto asset categories and cut duplicative compliance costs
- Lawmakers advance market structure bill as agencies prepare formal cooperation pact
U.S. financial regulators are taking a coordinated step to reduce long-standing fragmentation in digital asset oversight, as the Commodity Futures Trading Commission and the Securities and Exchange Commission move toward a shared regulatory framework for cryptocurrencies. The effort marks one of the clearest attempts yet to align federal supervision of a market that has expanded rapidly while operating under overlapping and sometimes conflicting rules.
CFTC and SEC Move Toward Unified Crypto Regulation in the US (Source: X)
The push gained momentum after CFTC Chair Michael Selig said his agency would formally join the SEC’s Project Crypto, an initiative launched in July to bring clarity to crypto regulation. Speaking at a joint regulatory discussion, Selig said the joint efforts aim to define a clear digital asset taxonomy, draw jurisdictional boundaries, and eliminate duplicative compliance requirements that have raised costs and discouraged competition. He stressed that regulatory overlap has imposed “real economic costs” on firms and investors while encouraging regulatory arbitrage instead of productive investment.
CFTC-SEC: A Push for Formal Cooperation
The coordination effort is expected to be formalized through a memorandum of understanding between the two agencies. According to reports, both regulators are discussing how to divide supervisory authority and design consistent rules for crypto markets.
Chairs Michael Selig and Paul Atkins confirmed in a joint interview with The Wall Street Journal that they are working toward signing an agreement to institutionalize cooperation. Similarly, officials familiar with the talks said details of the framework may be unveiled at a joint event focused on virtual assets scheduled for January 30.
However, one central issue on the agenda is how to determine whether a crypto asset falls under securities or commodities oversight, a question that has driven years of uncertainty for exchanges, issuers, and investors.
Project Crypto and Regulatory Goals
Project Crypto is designed to streamline oversight without rewriting existing laws. Selig said the goal “is not to blur statutory boundaries, but to reduce unnecessary duplication that does not improve market integrity.”
Under the plan, both agencies would seek aligned reporting standards, coordinated examinations, and consistent enforcement priorities across spot and derivatives markets. SEC Chair Paul Atkins framed the initiative as a turning point in regulatory culture.
Speaking ahead of Selig at the same event, Atkins said past institutional rivalries must give way to cooperation if U.S. markets are to remain competitive and resilient as digital assets mature.
Congress Moves on Market Structure
The regulatory alignment comes as lawmakers advance legislation aimed at clarifying federal crypto oversight. The Senate Agriculture Committee voted along party lines to move forward with the Digital Commodity Intermediaries Act, a market structure bill intended to define agency roles more clearly. While the bill must still be reconciled with parallel efforts in the Senate Banking Committee, it reflects growing congressional pressure for a unified approach.
During the markup, Senator Amy Klobuchar proposed an amendment requiring the CFTC to have at least four commissioners in place before assuming new authority. The amendment failed 12–11, with Republicans opposing the staffing condition. Klobuchar argued that expanding authority without adequate leadership risked weakening oversight.
Staffing Questions and the Road Ahead
Leadership at the CFTC remains thin following several departures in 2025, including acting chair Caroline Pham. Selig assumed office after those exits, leaving the agency with limited representation from the commissioner. Yet, as of the committee vote, President Donald Trump had not announced nominations to fill the vacant seats.
Despite those challenges, Selig said cooperation with the SEC would help “modernize and harmonize” regulation and prepare U.S. markets for future innovation. Taken together, the planned memorandum, Project Crypto collaboration, and congressional action signal a concerted federal effort to replace fragmented crypto oversight with a more consistent national framework.
