SEC and CFTC Unite to Secure U.S. Crypto Leadership Amid Global Rivalry

The U.S. Securities and Exchange Commission (SEC) has launched an aggressive initiative to "future-proof" its regulatory framework for cryptocurrency, aiming to solidify the industry's growth and resilience against potential shifts in political leadership. Under Chair Paul Atkins, the SEC is accelerating rulemaking efforts to harmonize policies with the Commodity Futures Trading Commission (CFTC) and reduce regulatory fragmentation, a move seen as critical to maintaining U.S. leadership in digital asset innovation.

Atkins, confirmed in April 2025, has prioritized streamlining regulations for crypto markets, including revising listing standards for crypto exchange-traded funds (ETFs), exploring blockchain-based stock trading, and revising quarterly reporting requirements. The SEC has also softened its enforcement stance, closing investigations into major crypto firms like Kraken and ConsenSys, signaling a departure from the aggressive approach under former Chair Gary Gensler. This shift aligns with broader efforts to foster innovation while addressing investor protections Cointelegraph^[1].

A cornerstone of the SEC's strategy is collaboration with the CFTC. In September 2025, the two agencies issued a joint statement outlining plans to harmonize product definitions, align margin frameworks, and create "innovation exemptions" to facilitate peer-to-peer trading of crypto assets. The initiative aims to eliminate the "no man's land" of regulatory uncertainty that has historically stifled product development. "We are charting a new course to solidify America's position as the world's financial leader," Atkins stated, emphasizing the need for coordinated oversight to prevent regulatory arbitrage SEC Newsroom^[2].

The SEC's Spring 2025 agenda further underscores this focus, with proposed rules targeting crypto issuance, custody, and trading. Key reforms include allowing crypto trading on national stock exchanges, easing compliance burdens for brokers, and modernizing the Investment Advisers Act to accommodate crypto firms. These changes reflect a broader effort to reduce regulatory friction and promote U.S. competitiveness in a global market where European and Asian regulators are also advancing crypto frameworks Coinpaper^[3].

However, the durability of these reforms remains a topic of debate. Legal experts like David B. Hoppe note that while future SEC chairs could not unilaterally reverse Atkins' policies, they might shift enforcement priorities or impose additional compliance requirements. "A less crypto-friendly administration could layer on burdens that slow progress, but existing instruments would likely be grandfathered in," said Andrew Forson, CEO of DeFi Technologies. The SEC's alignment with the Trump administration's pro-innovation stance, including the repeal of costly climate disclosure rules and the establishment of a Crypto Task Force, has further insulated its agenda from potential reversal Cointelegraph^[1].

The regulatory environment is also evolving at the legislative level. The SEC and CFTC are advancing a market structure bill through Congress, which could require new rules to be implemented via standard notice-and-comment processes. While this provides flexibility for future adjustments, experts argue that core reforms-such as allowing perpetual contracts and expanding trading hours-could become entrenched due to their alignment with market demands SEC Newsroom^[2].

As the U.S. government faces a funding standoff, the SEC continues operating at reduced capacity but remains committed to its agenda. Atkins has emphasized that the agency is "not slowing down" amid the shutdown, reflecting the urgency of finalizing rules before political dynamics shift again. This push for regulatory clarity comes as global competitors, including the EU's MiCA framework and Hong Kong's tokenization initiatives, intensify their efforts to capture market share in the crypto sector Coinpaper^[3].