SEC, CFTC Collaborate to Regulate Crypto Markets

The SEC and CFTC are teaming up under Project Crypto to streamline U.S. crypto regulation and prepare for upcoming federal legislation.

Key Takeaways

• The SEC and CFTC have launched a joint initiative called Project Crypto to coordinate digital asset regulation across U.S. markets.
• The collaboration aims to reduce regulatory duplication, clarify jurisdictional boundaries, and modernize oversight for blockchain-based activities.
• This move comes as Congress nears passage of bipartisan digital asset legislation, potentially reshaping the legal landscape for crypto in the U.S.
• Regulators emphasize a shift away from fragmented frameworks toward a unified model that supports innovation and investor protection.

What Happened?

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a major joint effort to regulate digital assets under a new framework called Project Crypto. The initiative is designed to harmonize agency rules, reduce compliance burdens, and ensure that emerging technologies like blockchain can grow within the U.S. under clear, fair, and coordinated oversight.

Project Crypto Sets the Stage for Unified Digital Asset Oversight

Financial regulators from the SEC and CFTC are laying down a new foundation for digital asset markets with Project Crypto, a policy initiative aimed at unifying regulatory approaches to crypto.

CFTC Chairman Michael Selig confirmed that the agency is officially partnering with the SEC on this effort. He emphasized the goal of creating a clear crypto asset taxonomy, clarifying jurisdictional lines, and removing duplicative compliance burdens. In his words:

The approach is not meant to blur agency roles but to align oversight where appropriate. By modernizing definitions and coordinating regulations, the agencies plan to give both market participants and investors a more predictable, innovation-friendly environment.

A Response to Years of Regulatory Friction

Under previous administrations, market participants struggled with unclear or conflicting rules, particularly when economically similar crypto products were treated differently depending on the regulator.

This joint effort marks a stark contrast. According to SEC Chair Atkins, the initiative is guided by a belief that financial regulation should be “precise, not punitive”, designed to mitigate risk without stifling growth. The agencies will work together to ensure oversight systems can track on-chain and hybrid market activity, while also offering clear on-ramps for compliant players.

Atkins noted:

Laying the Groundwork for Upcoming Legislation

The collaboration comes at a critical time. Congress is nearing passage of a bipartisan bill to define digital asset market structure. The heads of both agencies made it clear that Project Crypto is designed to prepare the SEC and CFTC to implement any new law quickly and effectively.

Recent staff efforts have already shown signs of this direction. For instance:

• The SEC’s Division of Corporation Finance clarified the security status of various crypto activities like memecoins and staking.
• The Division of Trading and Markets issued FAQs regarding broker-dealer and transfer agent responsibilities.
• The Division of Investment Management allowed for crypto custody by certain state-chartered institutions.

These actions signal a broader commitment to transparency, regulatory consistency, and open engagement with both incumbents and innovators.

CoinLaw’s Takeaway

In my experience watching crypto regulation evolve, this is one of the most encouraging moves yet. For years, builders in the U.S. have been stuck in a guessing game over which rules apply and who is in charge. Project Crypto feels like the moment when that might finally change.

What I found especially refreshing was the tone of cooperation between the SEC and CFTC. Instead of turf wars and contradictory enforcement, we’re seeing real leadership focused on making U.S. markets safer, smarter, and more accessible. If this keeps up, it could be a turning point for crypto regulation and a big win for entrepreneurs and investors alike.

The post SEC, CFTC Collaborate to Regulate Crypto Markets appeared first on CoinLaw.