SEC Chair Paul Atkins stated the agency is working to harmonize digital asset regulations with the CFTC "so that people can develop their products in the United States rather than feel that they have to go offshore."
The remarks came as Congress continues negotiating the stalled CLARITY Act, which would establish federal oversight jurisdiction for crypto markets.
Atkins made the comments during a Fox Business interview while the White House hosted banking and crypto industry representatives to resolve disputes over stablecoin provisions in pending legislation.
The February meetings produced no immediate agreement between traditional banks and crypto firms on key regulatory questions.
Joint Project Crypto Initiative
The SEC and CFTC announced January 29 they would pursue Project Crypto as a joint interagency initiative.
CFTC Chairman Michael Selig agreed with Atkins' position that most crypto assets trading in secondary markets are not securities, including digital commodities, collectibles and tools "even when sold as part of an investment contract."
Both agencies directed staff to draft a taxonomy clarifying jurisdictional boundaries as interim guidance while Congress finalizes market structure legislation.
Selig indicated the CFTC would codify standards for tokenized collateral, perpetual derivatives products and leveraged retail crypto trading.
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Legislative Stalemate Continues
The CLARITY Act passed the House in July 2025 but remains stalled in the Senate. The Banking Committee postponed its markup amid disagreements between banking groups seeking restrictions on stablecoin yields and crypto firms opposing such limits.
The Agriculture Committee advanced its version of the bill with narrow Republican support in late January.
White House crypto adviser Patrick Witt described the administration's legislative push as the "crown jewel" of current crypto policy priorities.
Industry sources indicate the White House directed participants to develop compromise language by the end of February, though the timeline faces challenges from Democratic demands for ethics provisions.
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