CFTC and SEC Restart Talks on Digital Assets

The acting chairman of the U.S. Commodity Futures Trading Commission (CFTC), Caroline Pham, has revealed that the CFTC and the Securities and Exchange Commission (SEC) are engaged in dialogues and cooperation on digital assets and other related topics. Pham stated, "We have restarted the staff-level dialogue between the CFTC and SEC. We hope to collaborate. In the past, we have had good cooperation, and I look forward to returning to a normal cooperative mode."

SEC Commissioner Hester Peirce echoed Pham's sentiments, emphasizing the importance of identifying the SEC's jurisdiction over digital assets and involving the public in rulemaking discussions. She stated, "The crypto working group has started to identify what falls within the SEC's jurisdiction and what does not, which is crucial. It is essential to involve the public in rulemaking discussions, and those affected by the rules should have the right to participate in rulemaking."

This collaborative approach to digital asset regulation comes as the U.S. government is taking a more proactive stance on the sector. President Trump's administration has issued an executive order on digital financial technology, and the SEC has formed a new crypto task force. The CFTC, under the leadership of acting chairman Brian Quintenz, has also been actively engaged in dialogues with the SEC on digital assets and other issues.

Quintenz, a vocal advocate for the crypto industry, has previously called for the creation of a self-regulatory organization to make enforceable rules and bolster the credibility of the marketplace. His appointment as acting chairman is seen as a positive sign for the crypto industry, as he is expected to be a major advocate for the sector.

In addition to the CFTC and SEC, other federal agencies such as the Federal Trade Commission (FTC) and the Federal Deposit Insurance Corporation (FDIC) are also playing a role in digital asset regulation. The FTC is focusing on consumer protection in the crypto space, while the FDIC is adopting a more open-minded approach to fintech partnerships, digital assets, and tokenization.

As regulatory developments continue, there has been an increase in private litigation related to digital assets. Class-action litigation in the states has been a trending topic in recent years, fueled by a lack of regulatory clarity and asset price volatility. Law firms like Skadden have been defending against these actions, and the trend is expected to continue in the near term.

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