The U.S. Securities and Exchange Commission and Commodity Futures Trading Commission have formally agreed to coordinate their regulatory oversight to end longstanding jurisdictional conflicts. According to a new memorandum, the agencies cited the blurring lines caused by crypto and new technologies as a key reason for enhanced cooperation. They pledged to provide clearer, technology-neutral rules and adopt a “minimum effective dose” strategy to foster innovation while maintaining market integrity.
Two of the United States’ top financial regulators have moved to end decades of regulatory conflict. According to a memorandum of understanding, the SEC and CFTC will now cooperate more closely on market oversight.
The agencies stated this is a pivotal time to regulate in harmony due to technological challenges. “New trading models, digital infrastructure, and onchain, automated systems increasingly blur traditional jurisdictional lines,” they said.
They vowed to provide regulatory clarity built on technology-neutral regulations. Information and data on issues of common interest will be shared to fulfill their mandates.
In a separate statement, SEC chair Paul Atkins emphasized the need for this change. “For decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions.”
Both agencies are working to advance the national goal of making the U.S. the “crypto capital of the world.” They have established a crypto task force and an advisory committee for emerging tech.
The memorandum notes they strive to create a fit-for-purpose regulatory framework for crypto assets. This clarity will apply to trading platforms, clearinghouses, and various market intermediaries.
The regulators also plan to adopt a “minimum effective dose” regulatory strategy. This pharmacological concept refers to the smallest dose needed for a desired therapeutic benefit.
This approach aims to foster innovation while maintaining market integrity and global competitiveness. The strategy is part of their broader effort to provide coordinated oversight.
