SEC and CFTC Pledge Regulatory Harmony for Crypto Markets

The announcement follows a joint regulatory roundtable in Washington, D.C., where leaders from both agencies described the moment as a turning point for American financial oversight. SEC Chair Paul Atkins stated in prepared remarks that “for too long, the SEC and CFTC have operated in parallel lanes, too often in conflict with one another, leaving the American public to bear the costs of duplication, delay, and uncertainty.” His declaration that “that era is behind us” signals a fundamental shift in how these two powerful regulators will approach their overlapping jurisdictions.

CFTC Acting Chair Caroline Pham reinforced this new collaborative spirit while pushing back on criticism of her agency’s work. “In recent years, the dynamic between our agencies could be described as one of competition rather than collaboration. That is not what this Administration wants. It is not what we want,” she said. Pham specifically addressed concerns about the CFTC’s relevance, stating “The CFTC is alive and well, and there needs to be no more FUD about what’s happening on the other side of town,” referring to fear, uncertainty, and doubt about the commission’s position in the new regulatory landscape.

Alex Urbelis, general counsel and chief information security officer at Ethereum Name Service, told Decrypt that the lack of clarity and dueling rulebooks had stalled blockchain innovation in the United States for many years. However, he cautioned that achieving greater harmonization between the two regulators wouldn’t necessarily be easy. “Collaboration between market regulators is an excellent sound bite for crypto, but requires real work and likely the will of Congress to remove statutory overlaps,” Urbelis said.

The legal expert highlighted the fundamental tension that regulators must navigate, noting that “the balance of investor protection and promoting innovation isn’t easy, and will always be a game of push and pull despite the best regulatory intentions.” His comments underscore the practical challenges facing the SEC and CFTC as they attempt to translate their harmonization pledge into concrete regulatory frameworks that satisfy both consumer protection concerns and industry demands for innovation-friendly policies.

The regulatory harmonization announcement coincides with several concrete policy changes that signal a broader pivot in Washington’s approach to digital assets. Since early 2025, the SEC and CFTC have floated 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 U.S. exchanges. These measures represent significant departures from previous regulatory approaches and align with the Trump administration’s push to ease restrictions on digital assets.

Perhaps most notably, the SEC has dismissed multiple enforcement actions against crypto firms including Kraken, Cumberland, and ConsenSys, signaling a broader pivot away from the aggressive crackdown that defined the Gensler era. This enforcement shift, combined with the SEC’s pledge to implement an “innovation exemption” for certain digital assets by year’s end as part of “Project Crypto,” demonstrates a tangible commitment to reducing regulatory burdens on the industry.

Meanwhile, the CFTC under Acting Chair Pham has increased its pace of enforcement and rulemaking actions, which she highlighted as proof the commission remains fully engaged. This simultaneous increase in CFTC activity alongside calls for collaboration illustrates the complex balancing act both agencies face as they attempt to harmonize their approaches while maintaining their distinct regulatory mandates and enforcement priorities.

SEC Commissioner Mark Uyeda emphasized the need for clearer lines of oversight as markets evolve, noting that “innovation rarely respects jurisdictional lines and often does not fit neatly into the statutory distinctions between ‘securities’ and ‘commodities’ written decades ago.” His comments highlight the fundamental challenge facing regulators: adapting frameworks designed for traditional financial markets to the rapidly evolving digital asset landscape.

Uyeda articulated the opportunity facing both agencies, stating “Today, we have an opportunity to avoid the mistakes of the past and instead, together, build a regulatory architecture that evolves with our markets — not against them.” This forward-looking perspective acknowledges that true regulatory harmonization requires not just cooperation between agencies but a fundamental rethinking of how financial regulation adapts to technological innovation that transcends traditional jurisdictional boundaries.