US financial regulators signaled a shift from coordination to execution on crypto oversight. Senior officials from the Securities and Exchange Commission and the Commodity Futures Trading Commission outlined plans for joint rulemaking using existing authority during a harmonization meeting.
US regulators have moved from discussing oversight to planning implementation. The Securities and Exchange Commission [SEC] and the Commodity Futures Trading Commission [CFTC] emphasized regulatory clarity and a coordinated approach during a rescheduled meeting.
Michael S. Selig stated the CFTC would begin exercising oversight without waiting for Congress. He described this as a transition toward implementation, with staff directed to draft rules.
Selig announced a joint initiative with the SEC called “Project Crypto.” This framework aims to harmonize oversight by establishing a shared crypto asset taxonomy.
A central focus is developing a common classification framework. Selig said he agreed with Paul S. Atkins that most crypto assets trading today are not securities.
Selig added that staff will work on a joint codification of a crypto asset taxonomy as an interim measure. The aim is to draw clearer jurisdictional lines and avoid leaving market participants “trapped in uncertainty.”
Planned rulemaking spans several areas including tokenised collateral and onshore perpetual crypto derivatives. The CFTC will also clarify the treatment of leveraged and margined retail crypto trading.
Further actions include withdrawing earlier proposals that restricted certain event contracts. The agency will also begin rulemaking on prediction markets and explore exemptions for software developers.
Both agencies framed harmonization as a practical exercise rather than a blurring of statutory boundaries. Selig said substituted compliance could allow firms to operate more efficiently across products overseen by different regulators.
Regulators stressed the execution phase would proceed independently of Congress. They plan to use existing authorities to modernize oversight as innovation continues.
