The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission (the sister agencies that will regulate most U.S. crypto activity) have been rivals in the past on crypto issues, but are now seeking a formal memorandum of understanding to combine the agencies’ efforts, SEC Chairman Paul Atkins said.
“We are refocusing our focus on a new golden age of regulatory coherence,” Atkins would say Tuesday in prepared remarks for the FIA Global Cleared Markets Conference in Florida. “More than aligning our rules, a harmonized framework also requires coordinating our responses to companies operating within it, including those that have interpretation questions or request exemptions.”
Atkins said he has also directed his staff to begin hosting joint meetings with CFTC employees on product applications, and a new “harmonization” website will allow companies to request coordinated discussions with both agencies.
“Companies should not be dragged back and forth between regulators when a product touches elements of both regulatory frameworks,” he said. “Clarity should also not depend on which agency speaks first.”
The division of functions between the SEC, which regulates securities and the exchanges on which they are traded, and the CFTC, the commodities watchdog that oversees derivatives markets, has been a key source of friction in the process of establishing cryptocurrency trading in the United States. No formal rules have been established stating where crypto products belong, which has led to years of regulatory action and legal disputes.
Since the arrival of leaders appointed by President Donald Trump, the two agencies have adopted crypto-friendly policies as a top priority, in line with the president’s requests. They are now working on several, including policies to clarify how digital assets will be defined as securities and commodities.
Formalized cooperation will also extend to enforcement decisions and regulatory examinations, which will become a more routine element for cryptocurrency companies as they enter deeper into federal oversight. This could save companies from having to undergo repetitive exams.
“Coordinated examination planning for dually regulated entities should become standard practice,” Atkins said. “Shared supervisory findings, subject to confidentiality safeguards, should be the norm rather than the exception.”
Atkins also revised his intention to pave the way for super apps that allow users to conduct business in both agencies’ jurisdictions.
“In the world of technology, a super app integrates multiple services into a single seamless interface,” he said. “The user does not switch between separate systems to perform related tasks. Instead, the integration occurs invisibly behind the scenes.”
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