The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are joining forces to enhance regulatory coordination in the digital asset sector. On September 29, these two regulatory bodies will convene for a joint roundtable to discuss the importance of harmonizing oversight in the rapidly evolving digital asset market.
In a recent joint statement released on September 5, the SEC and CFTC highlighted the detrimental effects of fragmented oversight on innovation and economic activity in the digital asset space. They emphasized the necessity of regulatory coordination to eliminate uncertainty and create a conducive environment for market participants and investors.
SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham underscored the benefits of regulatory harmonization, including lowering barriers, improving efficiency, and reinforcing U.S. leadership in financial markets. They emphasized the importance of working together to leverage the nation’s regulatory structure as a source of strength for all stakeholders.
The upcoming roundtable follows the recommendations of the President’s Working Group on Digital Asset Markets, which called for the development of a regulatory framework that supports innovation while safeguarding investor interests.
Key priorities for the roundtable include aligning U.S. markets with the global, always-on economy. One of the proposals under consideration is the expansion of trading hours for select asset classes such as foreign exchange, gold, and crypto to enhance liquidity and investor protection.
Additionally, the agencies will review frameworks for prediction markets and perpetual contracts to clarify rules and attract more trading activity to U.S. platforms. Portfolio margining is another focal point, with the aim of reducing capital inefficiencies by allowing firms to offset positions across asset classes.
Harmonized margin requirements will streamline net exposures for market participants while maintaining risk safeguards. The SEC and CFTC also plan to explore exemptions for decentralized finance (DeFi) projects to create a structured environment for peer-to-peer trading of various products without compromising investor protection standards.
Overall, the joint efforts of the SEC and CFTC signify a commitment to fostering innovation, enhancing regulatory clarity, and promoting a vibrant digital asset market in the United States. Stay tuned for updates from the upcoming roundtable discussions on September 29.