The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) signed a memorandum of understanding on March 11 to coordinate the regulation of crypto assets, ending years of jurisdictional battles between the two agencies.
Six Priority Areas Define New Framework
The joint coordination initiative targets six specific regulatory areas: clarifying product definitions through joint interpretations, modernizing clearing and margin frameworks, reducing friction for dually registered exchanges and intermediaries, establishing suitable regulatory frameworks for crypto assets, streamlining transaction and funding reporting, and coordinating cross-market examinations and enforcement.
Robert Teply from the SEC and Meghan Tente from the CFTC will co-lead this initiative.
Alternative Compliance Ends Redundant Enforcement
Under the memorandum of understanding, companies registered with both agencies will benefit from "alternative compliance," meaning that meeting the requirements of one party will satisfy the requirements of the other. Atkins announced that the "era of regrettable redundant enforcement" has ended.
The Memorandum of Understanding Fills the Void of the Stalled CLARITY Act in Congress
This memorandum of understanding effectively achieves regulatory coordination without waiting for legislation, covering joint supervision, product approval, policy interpretation, and dual registration.
Despite Regulatory Progress, Market Remains in Fear Trading
SEC and CFTC Sign Crypto Cooperation Memorandum, Ending Regulatory Dispute
The SEC and CFTC have signed a memorandum of understanding to coordinate the regulation of crypto assets, ending the dispute between the two agencies. The new framework covers six regulatory areas and introduces alternative compliance measures, aiming to streamline the regulatory process, although market sentiment remains low.