SEC-CFTC Collaboration Aims to Harmonize Digital Asset Regulations, Balancing Innovation and Protection

The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) announced a joint roundtable on September 29, 2025, to address regulatory harmonization in digital asset markets. The event, held at the SEC’s Washington, D.C., headquarters, will focus on aligning frameworks to foster innovation while protecting investors. SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham emphasized the need for collaboration to eliminate “regulatory no man’s lands” and enhance market clarity. The roundtable will include panels on historical regulatory dynamics, platform harmonization, and participant-centric reformstitle1^[1].

Key priorities outlined in the joint statement include harmonizing product and venue definitions, streamlining reporting standards, and aligning capital and margin frameworks. The agencies also proposed exploring expanded trading hours for U.S. markets to align with global 24/7 digital asset activity, provided operational feasibility and investor protections are maintainedtitle2^[2]. Perpetual derivative contracts, currently limited in the U.S., may be considered for onshoring to regulated exchanges, and portfolio margining frameworks could reduce capital inefficiencies by allowing cross-product risk nettingtitle3^[3].

The roundtable will feature industry leaders from traditional finance and crypto platforms, including Nasdaq, CME Group, Kraken, and Polymarket. Panel discussions will address how harmonization could unlock economic value for platforms and reduce costs for investors. For instance, portfolio margining reforms might free up capital for institutional participants, while innovation exemptions could enable peer-to-peer trading via DeFi protocols under defined safeguardstitle4^[4].

The joint effort follows a September 2 statement clarifying that SEC- and CFTC-registered exchanges are not prohibited from facilitating spot crypto commodity product trading. This aligns with broader initiatives like the SEC’s Project Crypto and CFTC’s Crypto Sprint, launched to implement recommendations from the President’s Working Group on Digital Asset Markets report. The agencies also reaffirmed support for foreign board of trade (FBOT) registrations, enabling non-U.S. exchanges to provide U.S. market access under CFTC oversighttitle5^[5].

Regulatory alignment is critical as the U.S. seeks to retain its leadership in financial innovation. The joint agenda includes addressing prediction markets, event contracts, and stablecoin collateral in derivatives. With the House having passed the CLARITY Act to define roles for the SEC and CFTC, the roundtable’s timing underscores urgency in creating a coherent framework before Senate deliberationstitle6^[6].

The agencies emphasized that harmonization would not only enhance U.S. competitiveness but also ensure investor protections remain robust. For example, while expanding trading hours could align with global markets, safeguards must prevent liquidity risks. Similarly, perpetual contracts would require transparent leverage limits and robust risk management to avoid replicating offshore challengestitle7^[7].