SEC and CFTC Combine Forces to Tackle Crypto Regulation
In a groundbreaking move, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are in talks to team up and regulate the booming crypto sector.
The collaboration comes on the heels of significant leadership changes within the regulatory bodies during Donald Trump's second term as President.
Fox Business reporter Eleanor Terrett broke the news, stating in a social media post on X (previously known as Twitter), "With digital assets taking center stage for regulators, the @SECGov and @CFTC are actively exploring avenues for efficient collaboration on #crypto regulation."
One potential proposal being considered is the reinstatement of the charter for the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues, as revealed by Terrett.
Established in 2010 by then CFTC Chairman Gary Gensler and SEC Chairman Mary Schapiro, the committee worked on identifying emerging regulatory risks, assessing their impact, and understanding how they affect investors and market players. It also aimed to align regulatory efforts between the two agencies.
Initially set to operate for two years with provisions for renewal, the committee went dormant in 2014. Acting CFTC Chair Caroline D. Pham advocated for its reactivation last year during a GMAC meeting.
"I am hopeful that in the upcoming year, both the CFTC and SEC will take steps to revive the charter for the CFTC-SEC Joint Advisory Committee on Emerging Regulatory Issues, which has remained inactive for a decade," expressed Pham.
Emphasizing the shift towards a collaborative regulatory approach in the U.S., Pham's sentiments echo previous efforts to enhance cooperation between the SEC and the CFTC.
Notably, Congressman John Rose put forth the "BRIDGE Digital Assets Act," suggesting the establishment of a joint advisory committee comprising a 20-member private sector group.
Simultaneously, these discussions unfold against the backdrop of heightened regulatory deliberations within the digital asset realm. The recent launch of a CEO Forum by the acting CFTC Chair offered crypto firms a platform to shape the Commission's regulations actively.
These developments coincide with broader regulatory transformations. President Trump has nominated Brian Quintenz for the CFTC chairmanship. Quintenz, a former CFTC commissioner and current global head of policy at a16z, stands as a pro-crypto leader.
Furthermore, Paul Atkins, a prominent cryptocurrency advocate, has been selected by the President to lead the SEC. Currently, Mark Uyeda serves as acting chair until Atkins receives Senate confirmation.
With crypto-friendly figures at the helm of both agencies, industry insiders are optimistic about the prospects of clearer guidelines and a more balanced regulatory framework moving forward.