The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are publicly aligning their approach to crypto regulation, signaling a major shift toward cooperation as lawmakers push forward market structure legislation.
At a joint SEC–CFTC event on Thursday, Michael Selig, chair of the Commodity Futures Trading Commission, announced that the CFTC will formally join the SEC’s Project Crypto, an initiative launched last July to clarify how digital assets should be regulated in the United States.
Regulators Aim to End Fragmentation
In prepared remarks, Selig said the partnership is designed to harmonize crypto oversight between the two agencies by creating a clearer regulatory framework. The joint effort will focus on defining crypto asset categories, clarifying jurisdictional boundaries, eliminating overlapping compliance rules, and reducing regulatory fragmentation.
He added that the goal is not to blur statutory authority, but to remove duplication that fails to improve market integrity.
The collaboration comes as Congress debates sweeping digital asset legislation intended to clearly define which agency regulates what - a long-standing issue that has plagued the U.S. crypto industry for years.
SEC Echoes Call for Cooperation
Paul Atkins, chair of the Securities and Exchange Commission, reinforced that message, calling for an end to regulatory infighting.
Selig added that both agencies intend to modernize and harmonize their regulatory approach to “future-proof” U.S. markets while Congress works through the details of a comprehensive crypto market structure bill.
CFTC Reconsiders Prediction Markets
Beyond crypto, Selig also addressed prediction markets, an area that has drawn increased scrutiny at both the state and federal levels.
Since taking office in December, Selig said he has instructed CFTC staff to withdraw a 2024 rule banning political and sports-related event contracts, as well as a 2025 advisory warning firms against offering sports-based prediction products.
His comments come as several U.S. states have cracked down on prediction market platforms, arguing they require gaming licenses to operate.
Staffing Concerns Shadow Expanded Authority
The CFTC’s growing role under proposed crypto legislation is drawing criticism in Congress - particularly given the agency’s current leadership structure.
Earlier Thursday, the Senate Agriculture Committee advanced a digital asset market structure bill, but not without controversy. Senator Amy Klobuchar proposed an amendment requiring the CFTC to have at least four commissioners in place before any new crypto authority could take effect.
The amendment failed on a 12–11 party-line vote, leaving Selig as the sole commissioner. The CFTC is typically governed by a five-member bipartisan panel, but multiple resignations in 2025 left the agency understaffed. As of now, President Donald Trump has not announced nominations to fill the remaining seats.
A Unified Message - With Open Questions
Despite lingering concerns over staffing and political divisions, Thursday’s joint appearance sent a clear signal: U.S. regulators are trying to present a united front on crypto.
With Congress still debating how to divide authority between the SEC and CFTC, the agencies appear eager to show they can cooperate - and avoid the regulatory confusion that has pushed crypto innovation offshore in the past.
