The CFTC joined the SEC's Project Crypto to unify regulations on crypto assets, reduce regulatory Shard , and lower compliance costs for the US market.
Leading US financial regulators have pledged close cooperation in building a unified legal framework for cryptocurrencies. Michael Selig, Chairman of the US Commodity Futures Trading Commission (CFTC), announced that the commission will officially join the Securities and Exchange Commission's (SEC) Project Crypto, marking a significant milestone in efforts to end years of overlapping oversight.
During a joint discussion between the two agencies on Thursday, Selig emphasized that this collaboration aims to promote a clear classification system for crypto assets, clarify jurisdictional boundaries, eliminate overlapping compliance requirements, and reduce regulatory Shard . According to the CFTC chairman, Shard oversight incurs real economic costs, increases barriers to market entry, reduces competition, raises compliance costs, and encourages arbitrage for regulatory advantage rather than investment in productivity.
Mr. Selig affirmed that the CFTC's goal is not to blur statutory boundaries, but rather to reduce unnecessary duplication that does not improve market integrity. Both agencies will work together to modernize and harmonize their regulatory approaches to help prepare U.S. markets for future innovations.
End the power struggle.
SEC Chairman Paul Atkins also spoke at the event, declaring that the jurisdictional battles of previous years must give way to a new era of cooperation. This move came after the Senate Agriculture Committee voted to advance the Digital Commodity Intermediaries Act on the same day, a bill aimed at establishing a framework for the cryptocurrency market structure and clarifying the roles of the SEC and CFTC in regulatory oversight.
In addition to cooperating with the SEC, Selig revealed that he has directed the CFTC staff to withdraw the 2024 rule banning political and sports-related event contracts, along with the 2025 recommendation warning registrants about providing access to sports event contracts. The CFTC chairman stated that the current framework has proven impractical and does not meet the needs of market participants, and he intends to rectify this by establishing clear standards for event contracts.
However, leadership at the CFTC became a point of contention when the Senate Agriculture Committee XEM amendments to the market structure bill. Senator Amy Klobuchar proposed an amendment requiring the CFTC to have at least four commissioners before implementing the bill, but this proposal failed with a vote of 12 against and 11 in favor, according to partisan lines. Klobuchar argued that it was impossible to grant the CFTC broad new powers when the agency only had a single member.
Currently, the CFTC is understaffed following numerous resignations in 2025, and President Donald Trump has yet to announce any nominations to add new commissioners to the agency.
