SEC and CFTC Sign MOU on Crypto Oversight Coordination

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission signed a memorandum of understanding on Wednesday to coordinate their oversight of financial markets, with a particular emphasis on developing a regulatory framework for cryptocurrency assets. The agreement aims to resolve longstanding jurisdictional conflicts between the two agencies and promote innovation while maintaining market integrity.

The memorandum formalizes collaboration on policymaking, examinations, enforcement actions, and information sharing. It establishes joint contact points for regulated firms to request combined meetings on policy and product applications, reducing duplicative registrations and overlapping rules that have historically complicated compliance. Officials from both agencies described the move as a response to evolving market dynamics, including new trading models and blockchain-based systems that blur traditional lines between securities and derivatives.

A key priority is creating a fit-for-purpose regulatory framework for crypto assets and emerging technologies. The agencies acknowledged that on-chain and automated systems have made it increasingly difficult...