SEC and CFTC Align to Reclaim U.S. Lead in Global Crypto Innovation

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced a joint roundtable on regulatory harmonization, scheduled for Sept. 29, 2025, from 1 p.m. to 5 p.m. The event will be held at the SEC headquarters in Washington, D.C., and will be open to the public with live webcasting available. The roundtable is part of ongoing efforts to align the two agencies' regulatory frameworks and address market complexities arising from the convergence of securities and non-securities markets. SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham emphasized that the initiative marks a "long-awaited journey" toward providing clarity to market participants and investors [1].

The joint effort follows a previous staff-level statement on facilitating trading of certain spot crypto asset products, which the leaders described as a foundational step. The agencies are now focusing on broader harmonization priorities, including the alignment of product and venue definitions, streamlining reporting and data standards, and unifying capital and margin frameworks. These steps aim to reduce regulatory redundancies and foster a coherent, competitive U.S. market environment. Atkins and Pham stated that working in "lockstep" can transform the current regulatory structure into a "source of strength" for all stakeholders [1].

A key objective of the roundtable is to address regulatory gaps that have led to economic activity shifting overseas, particularly in the digital asset space. The agencies highlighted the need for a unified approach to enable innovative products—such as perpetual contracts and prediction markets—to flourish within U.S. jurisdictions. The CFTC and SEC noted that offshore platforms have benefited from these innovations due to fragmented oversight and legal uncertainty. By harmonizing their frameworks, the agencies aim to reverse this trend and ensure that U.S. markets remain globally competitive [3].

The roundtable will explore several concrete areas for collaboration. For example, the agencies are considering extending trading hours in certain asset classes to align with the realities of a 24/7 global financial system. They also intend to examine the potential for introducing perpetual contracts and event contracts—derivative products that have gained traction internationally. These instruments, if regulated appropriately, could offer greater flexibility and transparency to U.S. investors while aligning with risk-management standards [3].

Another critical area under discussion is portfolio margining, where the SEC and CFTC aim to harmonize requirements to reduce capital inefficiencies. Currently, market participants must post collateral separately for positions held at SEC- and CFTC-regulated entities, even if these positions offset each other. A coordinated approach could allow for more efficient exposure netting, reducing the cost of hedged positions and encouraging broader participation from institutional and retail investors [3].

The joint effort also emphasizes innovation exemptions, particularly in the decentralized finance (DeFi) sector. Both agencies have signaled their openness to creating safe harbors that facilitate peer-to-peer trading of crypto assets without the need for intermediaries. These exemptions would allow market participants to experiment with new models while the agencies work on long-term rulemaking. The leaders underscored that the ability to self-custody assets is a core American value and should be supported through clear and predictable regulatory frameworks [3].

The roundtable marks a pivotal step in the evolution of U.S. financial markets. By harmonizing regulatory approaches, the SEC and CFTC aim to reduce unnecessary barriers, enhance market efficiency, and provide a stable environment for innovation. Their collaboration reflects a broader commitment to ensuring that the United States remains the global leader in capital markets and digital financial technology. As the event approaches, stakeholders will be watching closely to see how the agencies translate these initiatives into actionable reforms.

Source:

[1] SEC and CFTC Issue Joint Statement on Regulatory Harmonization Efforts, Will Co-Host Roundtable Sept 29 (https://www.sec.gov/newsroom/press-releases/2025-112-sec-cftc-issue-joint-statement-regulatory-harmonization-efforts-will-co-host-roundtable-sept-29)

[2] SEC-CFTC Joint Roundtable on Regulatory Harmonization, Sept 29, 2025 (https://www.sec.gov/newsroom/meetings-events/sec-cftc-joint-roundtable-sept-29-2025)

[3] Joint Statement from the Chairman of the SEC and Acting Chairman of the CFTC (https://www.cftc.gov/PressRoom/SpeechesTestimony/phamatkinsstatement090525)