U.S. financial regulators are moving to end years of regulatory fragmentation in cryptocurrency markets, with the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announcing a joint initiative aimed at creating unified rules for digital asset trading and derivatives markets.
Speaking at the CFTC’s headquarters, SEC Chairman Paul Atkins said cooperation between the two agencies marks a turning point in how the U.S. approaches crypto oversight, as lawmakers move closer to passing bipartisan market structure legislation.
“At today’s markets do not divide neatly along regulatory lines,” Atkins said, announcing that Project Crypto will now proceed as a joint initiative between the agencies. “Fragmented regulation in an integrated market is not a safeguard for investors so much as a source of confusion.”
The move signals a shift away from years of jurisdictional disputes between the SEC and CFTC that often left crypto firms uncertain whether products fell under securities or commodities law, pushing many businesses to launch products overseas instead of in the United States.
Regulators Aim To End Jurisdiction Confusion
Newly appointed CFTC Chairman Michael Selig said uncertainty about regulatory boundaries has slowed domestic innovation, forcing firms to operate abroad.
“Instead of leaving the industry trapped in uncertainty, as we’ve witnessed under past administrations, it is incumbent on us to draw a bright jurisdictional line for our nation’s builders and innovators,” Selig said.
He added that regulators must modernize their approach as markets increasingly move on-chain, warning that innovation will migrate if U.S. oversight remains unclear.
“America is home to the most transparent and well-regulated financial markets in the world,” Selig said. “With thoughtful engagement and a commitment to principled innovation, the U.S. is uniquely positioned to extend its preeminence into the crypto era.”
Crypto Derivatives And On-Chain Markets In Focus
A major part of the initiative involves enabling crypto derivatives and tokenized trading infrastructure to operate under U.S. rules.
Selig confirmed the CFTC is moving to create regulatory pathways for products long traded offshore.
“Despite clear market demand, prior administrations have failed to create a pathway for these products to exist onshore,” Selig said, referring to perpetual futures contracts. “Under my leadership, the CFTC will use the tools at its disposal to onshore perpetual and other novel derivative products so that they can flourish… subject to appropriate safeguards.”
Atkins emphasized that closer coordination between agencies would reduce duplicative compliance burdens and support innovation without weakening investor protections.
“The turf wars of years gone by must give way to a new era of cooperation,” Atkins said. “Working together with a common purpose, we can deliver clearer guidance and a regulatory framework that reflects how markets actually function instead of how they used to.”
Toward A Unified U.S. Crypto Framework
The agencies said joint rulemaking, shared oversight tools, and a new memorandum of understanding between regulators will aim to future-proof cooperation beyond current leadership tenures.
Selig described the initiative as a generational opportunity, saying, “Crypto markets span across our agencies’ respective regulatory frameworks… Project Crypto brings coordination, coherence, and a unified approach to federal oversight.”
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