SEC and CFTC Explore Joint Crypto Regulation

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are in discussions to collaborate on regulating the crypto sector. This comes after significant leadership changes at both regulatory bodies under the Trump administration.

Fox Business reporter Eleanor Terrett shared the news on X (formerly Twitter), stating that the SEC and CFTC are exploring ways to effectively collaborate on crypto regulation. One proposal under consideration is the reinstatement of the charter for the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues.

The committee, established in 2010 by then CFTC Chairman Gary Gensler and SEC Chairman Mary Schapiro, addressed various topics such as identifying emerging regulatory risks, evaluating their impact, and understanding their effects on investors and market participants. It also worked on aligning regulatory efforts between the agencies. The committee's objectives and scope of activities included conducting public meetings, submitting reports and recommendations to the CFTC and SEC, and serving as a vehicle for discussion and communication on regulatory issues of mutual concern.

The committee was originally established to function for two years, with provisions for renewal. However, it became inactive in 2014. Acting CFTC Chair Caroline D. Pham advocated for its revival last year, emphasizing that it would indicate a move toward a more collaborative regulatory approach in the US. This isn't the first push for a collaborative effort between the SEC and the CFTC. Previously, Congressman John Rose introduced the "BRIDGE Digital Assets Act," which proposes the creation of a joint advisory committee consisting of a 20-member private sector group.

Meanwhile, regulatory discussions around the digital asset market are gaining momentum. Last week, the acting CFTC Chair launched a CEO Forum, providing crypto firms with an opportunity to actively contribute to shaping the Commission's regulations. The ongoing discussions align with broader regulatory shifts, as President Trump has put forward Brian Quintenz as his nominee for the position of chairman of the CFTC. Quintenz, who previously served as a commissioner at the CFTC, currently acts as a16z's global head of policy. Additionally, the President has nominated Paul Atkins, a known cryptocurrency advocate, to lead the SEC. With pro-crypto leaders leading both agencies, many in the market are optimistic about clearer guidelines and a more balanced regulatory approach.