U.S. Commodity Futures Trading Commission (CFTC) Chair Michael S. Selig said on May 12 that the agency is working with the Securities and Exchange Commission (SEC) on regulatory oversight, rulemaking, and enforcement alignment across increasingly connected financial markets. Speaking at the FINRA 2026 Annual Conference in Washington, Selig highlighted participation in the SEC’s Project Crypto and work on a crypto asset taxonomy aimed at improving regulatory clarity. As securities and derivatives activity increasingly intersect, regulators face pressure to reduce gaps between their rulebooks.
Key Coordination Initiatives
Selig noted the CFTC and SEC have taken several steps toward more unified oversight where their jurisdictions meet. Those efforts include a memorandum of understanding, a joint harmonization initiative, and expected joint requests for comment tied to portfolio margining and swap data reporting. Regulators are also working to better align CFTC swap reporting requirements with SEC Regulation SBSR, the framework governing security-based swap reporting. Selig detailed:
“In recent months, we’ve entered into a memorandum of understanding, launched a joint harmonization initiative, joined the SEC’s Project Crypto, and advanced a common-sense crypto asset taxonomy to deliver clarity to our nation’s builders and innovators.”
Enforcement Alignment Reduces Duplicative Actions
Broader coordination between the agencies also extends to enforcement activity. Selig stated that parallel actions and information sharing have reduced the risk of duplicative or inconsistent outcomes tied to the same underlying conduct. Staff collaboration between the agencies, he added, can streamline compliance efforts and improve regulatory effectiveness across overlapping jurisdictions. This means firms facing potential investigations are less likely to be subjected to conflicting demands from both regulators, leading to more predictable outcomes.
Self-Regulatory Organizations Face Growing Cross-Market Demands
Self-regulatory organizations also need closer alignment as market activity cuts across securities and commodity derivatives, Selig explained. FINRA and the National Futures Association (NFA) increasingly operate in overlapping territory, leaving firms subject to both regulatory structures in ways older frameworks did not always anticipate. Coordinated examinations, stronger recordkeeping alignment, and shared surveillance practices could help regulators and market participants manage those overlapping obligations more efficiently. Selig framed the effort as cooperation rather than consolidation, noting that alignment should preserve each organization’s specialization while improving consistency where coordination adds value.
Compliance Costs Expected to Decline
Legal and compliance teams could benefit from clearer coordination across agencies and self-regulatory organizations, Selig said. He added that more consistent oversight standards may help firms reduce interpretive risk, lower compliance costs, and allocate resources more effectively in fast-moving financial markets. Crypto firms, broker-dealers, and asset managers are likely to experience reduced regulatory friction, especially in areas where both the CFTC and SEC claim jurisdiction over digital asset products.