SEC and CFTC Explore Collaboration for Crypto Regulation Amid Leadership Changes

• SEC and CFTC are discussing collaboration to regulate the crypto sector amid leadership changes.

• A proposal for the Joint CFTC-SEC Advisory Committee’s revival is under consideration.

• The upcoming leadership shifts may signal a crypto-friendly regulatory environment with clearer guidelines.

The SEC and CFTC are considering collaboration on crypto regulation, signaling potential positive shifts in the regulatory landscape for digital assets.

SEC, CFTC Join Hands For Crypto Regulation

Fox Business reporter Eleanor Terrett shared the news in a social media post on X (formerly Twitter). “With digital assets becoming a top priority for regulators, the @SECGov and @CFTC are currently discussing ways in which they can effectively collaborate on #crypto regulation,” the post read.

According to Terrett, one proposal under consideration is the reinstatement of the charter for the Joint CFTC-SEC Advisory Committee on Emerging Regulatory Issues.

The committee was created in 2010 by then CFTC Chairman Gary Gensler and SEC Chairman Mary Schapiro. It addressed various topics, including identifying emerging regulatory risks, evaluating their impact, and understanding their effects on investors and market participants. It also worked on aligning regulatory efforts between the agencies.

“The committee’s objectives and scope of activities shall be to conduct public meetings, to submit reports and recommendations to the CFTC and the SEC and otherwise to serve as a vehicle for discussion and communication on regulatory issues of mutual concern and their effect on the CFTC’s and SEC’s statutory responsibilities,” the charter detailed.

The committee was originally established to function for two years, with provisions for renewal. However, it became inactive in 2014. Acting CFTC Chair Caroline D. Pham advocated for its revival last year. “I am looking forward to the future, and I hope that next year, both the CFTC and SEC will act to reinstate the charter for the CFTC-SEC Joint Advisory Committee on Emerging Regulatory Issues, which has been dormant for the past decade,” Pham said in a November GMAC meeting.

She emphasized that it would indicate a move toward a more collaborative regulatory approach in the US. It’s worth noting that this isn’t the first push for a collaborative effort between the SEC and the CFTC. Previously, Congressman John Rose introduced the “BRIDGE Digital Assets Act,” which proposes the creation of a joint advisory committee consisting of a 20-member private sector group.

Meanwhile, this development comes as regulatory discussions around the digital asset market are gaining momentum. Last week, the acting CFTC Chair launched a CEO Forum. This provided crypto firms with an opportunity to actively contribute to shaping the Commission’s regulations.

The ongoing discussions align with broader regulatory shifts. President Trump has put forward Brian Quintenz as his nominee for the position of chairman of the CFTC. Quintenz, who previously served as a commissioner at the CFTC, currently acts as a16z’s global head of policy.

Additionally, the President has nominated Paul Atkins, a known cryptocurrency advocate, to lead the SEC. At present, Mark Uyeda is acting as chair until the Senate confirms Atkins.

With pro-crypto leaders leading both agencies, many in the market are optimistic about clearer guidelines and a more balanced regulatory approach.

Conclusion

The potential collaboration between the SEC and CFTC signals a pivotal moment for cryptocurrency regulation. With proactive leadership changes and the potential revival of the advisory committee, stakeholders may finally see a clearer and more coherent regulatory framework emerging in the digital asset space.