CFTC and SEC Join Forces to Streamline Crypto Regulations

Michael Selig, chair of the US Commodity Futures Trading Commission (CFTC), announced that the agency will work closely with the Securities and Exchange Commission (SEC) on Project Crypto, which the SEC launched in July to clarify rules for digital assets.

Selig said the partnership aims to create a clear classification system for crypto assets, define which agency oversees which areas, reduce overlapping compliance rules, and make regulation less confusing and fragmented.

He explained that fragmented oversight raises costs, limits competition, and encourages companies to exploit loopholes instead of focusing on productive investment. Selig emphasized that the goal is not to blur the legal boundaries between the agencies but to simplify oversight in a way that maintains market integrity.

The announcement comes as the Senate Agriculture Committee voted along party lines to advance a digital asset market structure bill, which is intended to clarify the roles of the SEC and CFTC in regulating crypto. Selig said both agencies plan to modernize and coordinate their approach to regulation to prepare U.S. markets for future innovation.

CFTC Faces Leadership Challenges

SEC Chair Paul Atkins also spoke at the event, urging an end to past “turf wars” and encouraging a cooperative approach to crypto oversight. CFTC leadership has faced scrutiny in light of the legislation. Senator Amy Klobuchar proposed an amendment requiring that the CFTC have at least four commissioners before the market structure bill could be implemented, but the amendment failed 12–11 along party lines, with Republicans opposing it.

This concern arises because the agency has been understaffed since several resignations in 2025, including acting chair Caroline Pham, leaving the CFTC with only one Republican member. President Donald Trump has not yet announced plans to nominate new commissioners.

Selig’s remarks and the pending legislation highlight ongoing efforts to coordinate crypto regulation, streamline rules, and strengthen oversight while addressing structural challenges at the agency.