The SEC and the CFTC have announced a new Memorandum of Understanding that aims to strengthen coordination between the two agencies and improve transparency in the regulation of financial markets, including digital assets.
The agreement outlines how the agencies will collaborate on policy development, oversight, testing and enforcement while sharing information and aligning regulatory definitions. Officials said the move is intended to reduce duplicative regulations and provide clear guidance to market participants.
“For decades, regulatory battles, duplicative agency registrations and different sets of regulations between the SEC and the CFTC have stifled innovation and pushed market participants into other jurisdictions,” said SEC Chairman Paul Atkins. The updated agreement will help harmonize regulatory definitions, coordinate oversight and facilitate secure data sharing between agencies, he said.
CFTC Chairman Michael S. Selig said the initiative reflects an effort to update the regulatory framework as markets evolve. By harmonizing oversight and eliminating redundant regulations, the agencies aim to ensure seamless oversight of financial markets, he said.
Along with the agreement, the agencies launched a Joint Coordination Initiative to promote coordinated oversight in areas where both regulators have jurisdiction. Efforts will focus on clarifying product definitions, modernizing the clearing and margin framework, streamlining regulatory reporting, and improving cross-market oversight.
The initiative will also work to develop an appropriate regulatory framework for crypto assets and other emerging technologies, officials said.
The Joint Coordination Initiative is led by Robert Tapley of the SEC and Meghan Tente of the CFTC.
