The SEC and the CFTC are moving toward a more coordinated model for securities and derivatives oversight, with the stated aim of cutting duplicate compliance burdens for firms regulated by both agencies. SEC Chair Paul Atkins laid out the plan on March 10 at the FIA Global Cleared Markets Conference in Boca Raton, Florida.
Atkins said the period of duplicative enforcement is over. If both agencies pursue the same conduct, they are expected to align legal theories and remedies where possible, while still operating under their own statutory mandates. The message was clear: coordination should replace overlap.
Substituted compliance is central to the proposal
A key feature of the plan is “substituted compliance.” Under that approach, one agency’s framework could satisfy overlapping obligations imposed by the other, as long as the regulatory outcomes are comparable. For firms registered with both regulators, that could remove the need to run parallel compliance processes for similar requirements.
The SEC is also preparing a harmonization webpage where companies will be able to request joint guidance from both agencies. Atkins said joint meetings on new and pending product applications are also planned, a step intended to speed up the review process and reduce procedural duplication.
Prediction markets and cross-margining are on the joint agenda
Atkins pointed to cross-margining as a way to unlock liquidity that is currently separated across different derivatives accounts. The structure would let firms use collateral more efficiently across related trading platforms instead of keeping capital siloed.
Prediction markets are another area where the agencies want coordinated guidance. Atkins said regulators need to address whether event contracts should be treated as security-based swaps or other securities, with the goal of clarifying jurisdictional lines while still allowing room for innovation.
Digital asset coordination extends through Project Crypto
The SEC and CFTC also plan to update their Memorandum of Understanding to coordinate examinations, supervision, and enforcement for firms overseen by both agencies. The report says Project Crypto, launched in January 2026, has established shared definitions for digital commodities and asset securities, bringing digital asset rules into the broader harmonization effort.
Atkins compared the model to a regulated “super-app,” where firms could manage compliance across frameworks instead of duplicating reporting and supervisory work. He also invited market participants to propose new trading structures and said regulators may offer targeted relief where needed.
Even with deeper coordination, Atkins stressed that the agencies will remain separate. The SEC and the CFTC, he said, operate under distinct statutes set by Congress, and closer cooperation should not be read as a merger.