SEC and CFTC Join Forces to Clarify U.S. Crypto Regulations

The U.S Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are collaborating to clarify crypto regulations in the country. This partnership is a turning point for the industry, and people hope the two regulatory bodies will be able to build on the momentum created by pro-crypto legislation such as the GENIUS Act and CLARITY Act.

SEC and CFTC Collaborate to Bring Crypto Regulatory Clarity

The partnership will see the SEC’s Division of Trading and Markets work closely with the CFTC’s Division of Market Oversight and Division of Clearing and Risk. Together, they aim to align the SEC’s “Project Crypto” with the CFTC’s “Crypto Sprint” program. The main goal is to create regulatory advice that lets exchanges offer leveraged, margined, or financed spot crypto asset products in a way that is safe for investors and follows the rules.

The agencies made it clear that existing regulations do not stop SEC- or CFTC-registered exchanges from helping people trade some spot crypto products. They also told those in the industry to work closely with regulators to get advice on how to follow the rules, get approvals, and meet operational needs.

The announcement follows years of disputes between the two agencies over whether digital assets should be classified as securities or commodities. The new approach is intended to eliminate the mixed signals that previously discouraged innovation and led to confusion among market participants.

CFTC Acting Chair Caroline D. Pham emphasized that this initiative represents a shift in tone:

“Under the prior administration, our agencies sent mixed signals about regulation and compliance in digital asset markets, but the message was clear: innovation was not welcome. That chapter is over.”

SEC Chair Paul Atkins echoed the sentiment, describing the collaboration as a “major step toward bringing innovation back to America’s crypto asset markets.”

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The move is supported by the Trump administration’s broader pro-crypto stance. The President’s Working Group on Digital Asset Markets has encouraged the two agencies to maximize their existing powers to foster innovation. Lawmakers have also called for frameworks that are more unified. The BRIDGE Digital Assets Act was sponsored by Representative John Rose in 2024. It sought for a joint regulatory council that would include views from both government agencies and private enterprise.

The SEC and CFTC are working together because they know that clear and uniform laws are important for the future of crypto in the U.S. People in the industry have been saying for a long time that uncertainty over regulations has slowed growth and pushed innovation to other countries. The agencies are showing that they are willing to work together to offer the certainty needed to stabilize the market, get institutions involved, and safeguard investors.

For a sector long defined by ambiguity, this partnership could mark the beginning of a more orderly, transparent, and innovation-friendly U.S. crypto landscape.