SEC and CFTC Unite to Rewrite the Rules for U.S. Digital Finance

The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced a joint roundtable on Sept. 29, 2025, aimed at advancing regulatory harmonization between the two agencies. The event, set to take place at the SEC headquarters in Washington, D.C., will be open to the public and broadcasted live. SEC Chairman Paul S. Atkins and CFTC Acting Chairman Caroline D. Pham emphasized the importance of collaboration, stating that the roundtable marks a “long-awaited journey to provide markets the clarity they deserve.” The initiative seeks to align regulatory frameworks to reduce redundancies, enhance market efficiency, and foster innovation [1].

A key focus of the roundtable will be the development of coordinated strategies for regulating crypto assets and decentralized finance (DeFi) protocols. The SEC and CFTC have recognized that the current fragmented regulatory landscape has driven some financial innovations overseas. As part of their efforts to reverse this trend, the agencies plan to explore ways to streamline definitions, reporting standards, and capital requirements for products such as spot crypto assets and perpetual contracts. This approach aims to create a “reliable playbook for innovators and investors,” ensuring that U.S. markets remain competitive on a global scale [3].

The discussion will also address the challenges surrounding perpetual contracts—derivatives without a fixed expiration date, which are widely traded in offshore crypto markets but limited in the U.S. due to jurisdictional and definitional constraints. The agencies are considering steps to bring these contracts onshore, provided they meet investor protection standards. If implemented, this move could capture economic activity currently flowing to foreign platforms and provide U.S. traders access to products with transparent leverage limits and risk management controls [3].

Another priority is portfolio margining, where a coordinated framework could reduce capital inefficiencies by allowing market participants to offset positions across different asset classes. Currently, participants must post collateral separately with SEC-registered and CFTC-registered entities, even when their holdings hedge one another. By harmonizing margin requirements, the agencies could allow broker-dealers and futures commission merchants to net exposures more efficiently, reducing costs and lowering barriers for participation in cross-market strategies. This could also lead to tighter spreads and greater liquidity in U.S. markets [3].

Decentralized finance (DeFi) is also a focal point of the roundtable. The agencies reaffirmed their openness to considering “innovation exemptions” that would enable peer-to-peer trading of spot crypto assets and derivatives through DeFi protocols. These exemptions would allow market participants to develop commercially viable models while the agencies work on long-term rulemaking. The emphasis on peer-to-peer trading aligns with the broader goal of supporting self-custody of assets, a core American value that has seen renewed interest in the digital asset space [3].

The roundtable represents a pivotal step in the broader effort to harmonize U.S. financial regulations and position the country as a global leader in digital asset markets. By working in unison, the SEC and CFTC aim to eliminate regulatory uncertainty and provide a clear framework that supports both innovation and investor protection. As the first step in a larger initiative, the discussions will lay the groundwork for future collaborations that could reshape the U.S. capital markets landscape [1].

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 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)