- The SEC and CFTC signed a memorandum of understanding on March 11 to coordinate oversight of digital assets across six priority areas.
- A Joint Harmonization Initiative will align product definitions, clearing frameworks, and enforcement actions between the two agencies.
- The agreement comes as Congress stalls on the Digital Asset Market CLARITY Act, with agencies opting to act independently rather than wait for legislation.
The US Securities and Exchange Commission and the Commodity Futures Trading Commission have officially signed a memorandum of understanding to coordinate oversight of digital assets, aiming to resolve long-standing jurisdictional disputes between the two regulators.
The now-signed agreement creates a formal framework for cooperation across several areas, including clarifying how digital asset products are classified, modernising clearing and collateral standards, reducing regulatory friction for exchanges registered with both agencies, and improving trade reporting and market surveillance.
Both regulators also launched a Joint Harmonization Initiative to implement the plan. SEC official Robert Teply and CFTC official Meghan Tente will lead coordination efforts covering policy development, examinations, and enforcement activities.
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Under the framework, the SEC will retain authority over primary market activities such as token fundraising and digital assets that function as investment contracts.
The CFTC will oversee secondary market trading of digital commodities, a category that includes Bitcoin and Ethereum.
SEC Chair Paul Atkins said closer coordination is necessary not only to align rules but also to ensure consistent responses to companies seeking regulatory clarity or exemptions. He added that previous conflicts between the agencies had created duplicative registration requirements and pushed some firms to operate outside the United States.
CFTC Chair Michael S. Selig said the agreement reflects a shared commitment to building a more consistent regulatory structure for digital asset markets.
The arrangement marks a shift from earlier regulatory disagreements. Former SEC Chair Gary Gensler argued that most cryptocurrencies should be treated as securities, while former CFTC Chair Rostin Behnam maintained that many digital assets qualify as commodities. The lack of alignment led to overlapping enforcement actions and uncertainty for industry participants.
The memorandum comes as Congress continues to debate broader legislation. The Digital Asset Market CLARITY Act, which aims to establish a comprehensive market structure for cryptocurrencies, remains stalled in the Senate.
Regulators have moved ahead with coordination efforts while awaiting legislation. In September 2025, the SEC and CFTC issued a joint statement signaling an end to their jurisdictional dispute, followed by the creation of “Project Crypto,” an interagency task force launched in January 2026.
The March 11 agreement formalises those efforts and includes mechanisms for public feedback through dedicated portals on each agency’s website.
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