CFTC and SEC Pledge Cooperation on Crypto Oversight
After years of tension between U.S. financial regulators over who should oversee the crypto market, a major shift may finally be underway. Acting Chair of the Commodity Futures Trading Commission (CFTC), Caroline Pham, declared, “the turf war is over” during a joint roundtable with the Securities and Exchange Commission (SEC) on Monday.
This historic meeting marked a turning point in the long-running debate over whether digital assets should be classified as commodities or securities—a regulatory gray area that has frustrated investors, startups, and major financial institutions alike.
In the past, the CFTC and SEC have often clashed over jurisdiction, creating uncertainty for the rapidly evolving crypto industry. However, both agencies now appear committed to working together to streamline regulation and avoid sending mixed signals to the market.
Clarity Act Could Reshape Crypto Regulation in the U.S.
At the heart of this new cooperative spirit is the Clarity Act, a bipartisan bill currently making its way through Congress. The legislation aims to clearly define a market structure for digital assets, potentially granting the CFTC greater oversight powers while preserving the SEC’s role in protecting investors.
Pham acknowledged that past regulatory boundaries have been unclear but emphasized that the focus is now on collaboration. “We owe it to the public to ensure transparency and consistency in how we regulate digital assets,” she said.
SEC Chair Paul Atkins echoed that sentiment but rejected the idea of merging the two agencies. “This is about harmonization, not merger,” he stated, highlighting that both the CFTC and SEC intend to maintain their separate roles while coordinating more effectively.
The roundtable featured prominent voices from the financial and crypto sectors, including representatives from Kraken, Robinhood, Polymarket, J.P. Morgan, and Bank of America. Their participation underscores the industry’s keen interest in shaping a regulatory framework that supports innovation without sacrificing consumer protection.
As Washington pushes forward with clearer legislation and regulators aim to cooperate rather than compete, the crypto industry may soon see the regulatory clarity it has long awaited.
