SEC and CFTC Signal End to Crypto Turf Wars in Joint Harmonization Push

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission held a historic joint “harmonization” event, marking a coordinated shift in how the United States regulates digital assets.

SEC Chairman Paul Atkins and CFTC Chairman Michael Selig jointly signaled an end to the long-standing jurisdictional disputes that have fragmented crypto oversight. The leaders framed the initiative as a strategic effort to position the U.S. as the “crypto capital of the world” by replacing regulatory rivalry with alignment.

Joint Regulatory Initiatives Take Shape

At the center of the event was a formal commitment to coordinated rulemaking. The CFTC officially joined the SEC’s Project Crypto, an initiative designed to establish a clear taxonomy for digital assets and eliminate overlapping or duplicative compliance obligations.

Both agencies also confirmed they are finalizing a Memorandum of Understanding (MoU) that will explicitly define supervisory roles and jurisdictional boundaries across different categories of crypto assets. The agreement is intended to reduce regulatory uncertainty by ensuring assets are classified consistently under securities and commodities frameworks.

Chairmen Atkins and Selig emphasized that harmonized definitions are a prerequisite for innovation, stating that inconsistent classifications have been a primary barrier for institutional adoption and product development.

New Policy Signals for Markets and Investors

Beyond jurisdictional clarity, the event outlined several forward-looking policy directions. SEC Chair Atkins stated that the “time is right” for cryptocurrency exposure to be considered within 401(k) retirement plans, provided appropriate safeguards are implemented to protect long-term savers.

On the derivatives side, CFTC Chair Selig directed staff to begin drafting rules for tokenized collateral and “onshore” perpetual contracts, aiming to bring products that currently thrive offshore into a regulated U.S. environment. He also committed to establishing “clear and unambiguous safe harbors” for software developers, addressing a long-standing concern around liability for open-source infrastructure builders.

Tokenized Securities Clarified

Coinciding with the harmonization event, the SEC released new guidance reaffirming that tokenized securities remain subject to existing securities and derivatives laws. The guidance draws a firm distinction between issuer-authorized tokenized equities, which represent legitimate on-chain ownership, and third-party synthetic products that track prices without issuer involvement and carry higher counterparty risk.

This clarification reinforces the agencies’ shared view that blockchain technology does not alter the legal nature of financial instruments, but can modernize how they are issued, traded, and settled.

Legislative Backdrop Adds Momentum

The joint appearance comes amid active congressional movement on crypto market structure. Just one day earlier, the Senate Agriculture Committee advanced a digital asset bill by a 12–11 vote, legislation that would expand the CFTC’s authority and formally codify oversight boundaries between the two regulators.

Together, the regulatory alignment and legislative progress suggest that 2026 may mark a turning point for U.S. crypto policy, shifting from enforcement-driven uncertainty toward coordinated supervision and market integration.

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