US SEC and CFTC Sign Memorandum of Cooperation to Build a United Front for Cryptocurrency Regulation

The long-standing “regulatory turf war” between the two major U.S. financial regulators has officially come to an end. The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) recently signed a formal “Memorandum of Understanding (MOU),” announcing plans to integrate overlapping functions and jointly establish a cryptocurrency regulatory framework.

According to the publicly released MOU on Wednesday, the two agencies will strengthen cooperation in areas such as oversight mechanisms, financial product approval, and policy interpretation. They will also coordinate enforcement actions and promote a “dual registration” system for relevant companies. Since most crypto asset companies are subject to both securities and derivatives regulation, these measures are expected to have a broad impact on the overall crypto industry.

The memorandum explicitly states that “establishing a regulatory framework applicable to crypto assets and other emerging technologies” is a top priority, indicating that U.S. regulators are attempting to create a more consistent oversight system for the long-standing gray area of digital assets.

SEC Chair Paul Atkins previewed this cooperation agreement in a public speech on Tuesday. He noted that regulated financial firms and crypto companies will be able to use the contact points provided by both agencies to arrange joint meetings and discuss policy directions and applications for financial products.

In a statement on Wednesday, Paul Atkins said: “For a long time, turf wars between regulators, redundant and cumbersome registration procedures, and differing regulations by the SEC and CFTC have not only stifled innovation but also pushed many market participants to develop in other jurisdictions.”

He further pledged: “In the future, through unified regulatory definitions, coordinated oversight mechanisms, and seamless, secure information sharing across agencies, we will ensure that future regulations provide the necessary clarity for the market.”

Under the new agreement, the two agencies will establish regular meeting schedules and information sharing mechanisms. In the past, crypto companies often faced the dilemma of “being targeted by two agencies for the same case”; moving forward, if their jurisdictions overlap, they will coordinate in advance on charges, penalties, litigation strategies, and external communication.

During the previous administration, the SEC and CFTC often had clear disagreements over the regulation of crypto assets. One of the most contentious issues was whether certain crypto assets should be classified as “securities” or “commodities.”