The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission — the sister agencies that regulate most U.S. cryptocurrency activity — have been rivals on crypto issues in the past, but they are now seeking a formal memorandum of understanding to unite the agencies’ efforts, SEC Chairman Paul Atkins said.
“We are recalibrating our approach towards a new golden era of regulatory consistency,” Atkins said in remarks prepared for the FIA Global Cleared Markets Conference in Florida on Tuesday. “A unified framework requires not only aligning our rules but also coordinating our response to companies operating within it, including those who have questions about interpretations or claim exemption relief.”
Atkins said he also directed his staff to start holding joint meetings with CFTC staff on product applications, and that a new “coordination” website will allow companies to request coordinated discussions with both agencies.
“Companies should not be shuffled back and forth between regulators when a product touches elements of both regulatory frameworks,” he said. “Nor should clarity depend on which agency speaks first.”
The division of roles between the U.S. Securities and Exchange Commission (SEC), which regulates securities and the exchanges that trade them, and the U.S. Commodity Futures Trading Commission (CFTC), the commodities regulator responsible for overseeing derivatives markets, has been a major source of friction in the establishment of U.S. cryptocurrency trading. There are currently no formal rules governing where crypto products belong, and that has led to years of regulatory actions and legal disputes.
Since the leaders appointed by President Donald Trump took office, the two agencies have made crypto-friendly policies a top priority, at the request of the president. They are currently working on a number of policies, including one that clarifies how digital assets are defined as securities and commodities.
Formal cooperation will also extend to enforcement decisions and regulatory inspections, which will become a more routine element of cryptocurrency companies as they become more deeply involved in federal regulation. This saves companies from having to go through repeated inspections.
“Coordinated examination plans for dual regulatory entities should become standard practice,” Atkins said. “Common regulatory findings should be the norm, not the exception, subject to confidentiality guarantees.”
Atkins also revisited his intention to create a path for the super app to allow users to conduct business within the jurisdiction of both agencies.
“In the technology world, super apps integrate multiple services into a seamless interface,” he said. “Users don’t need to switch between separate systems to complete related tasks. Instead, integration happens invisibly and behind the scenes.”
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