The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission have unveiled a joint memorandum aimed at ending years of regulatory friction in crypto oversight. The framework lays out coordinated rulemaking, harmonized enforcement, streamlined product registration, and easier dual registration, while also creating unified contact points for firms seeking regulatory consultations or filing products with both agencies.
New memorandum targets duplicated oversight
The agreement is designed to address inconsistencies that have long complicated operations for financial institutions and digital asset companies subject to overlapping mandates. Under the new structure, firms whose activities touch both regulators should face a more aligned process on compliance, filings, and supervisory engagement. The scope is broad, covering exchanges, clearing houses, collective investment vehicles, broker-dealers, and businesses offering products that fall under both securities and derivatives rules.
The memorandum also sets procedures for joint enforcement. If both agencies investigate the same entity, they are expected to consult on the scope of charges, litigation strategy, timing, and public statements. The stated aim is to reduce parallel proceedings that previously exposed some companies to separate actions over nearly identical conduct.
Crypto-specific framework becomes a central goal
A major part of the pact is the development of a “fit-for-purpose regulatory framework” for crypto assets and related technologies. That language signals a shared view that traditional financial rules do not always map neatly onto blockchain-based instruments and crypto trading venues. The SEC and CFTC said they will continue regular meetings and ongoing information sharing on issues that cross both agencies’ jurisdictions.
SEC Chair Paul Atkins oversees U.S. securities market supervision, including digital assets classified as securities. CFTC Chair Brian Quintenz leads oversight of commodity derivatives and is involved in policy for crypto assets treated as commodities. The report notes that both men have backgrounds in fintech and digital asset legal work, a factor that has shaped their common focus on modernizing crypto regulation.
Agencies adopt a “minimum effective dose” model
The two regulators are also formally adopting what they describe as a “minimum effective dose” approach. In practice, that means imposing only the requirements considered necessary to protect market integrity and investors, while keeping room for innovation and global competitiveness. Atkins said longstanding territorial disputes, duplicate registrations, and conflicting compliance obligations had discouraged some market participants from launching new products in the United States.
In the official announcement, Atkins said, “For decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions.” The pact follows several months of negotiations and reflects policy momentum from the Trump administration, which has signaled support for expanding the U.S. role in digital assets. Since the administration change last year, both agencies have established working groups focused exclusively on crypto oversight strategy. The agreement also calls for regular joint meetings with industry participants to gather input on future regulatory changes.