The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are reportedly working together to develop a joint approach to regulating digital assets. According to a report by Fox Business Journalist Eleanor Terret on Feb. 13, the two agencies are looking to revive the long-dormant CFTC-SEC Joint Advisory Committee (JAC) as a means of collaboration.
The JAC was initially established in 2010 with the goal of addressing shared regulatory concerns between the SEC and CFTC. However, due to leadership changes, the committee became inactive in 2014. The committee was part of a broader effort to harmonize regulations outlined in a 2009 report, aiming to identify emerging financial risks and streamline oversight.
Acting CFTC Chair Caroline Pham is said to be advocating for the reinstatement of the JAC, viewing it as a crucial step towards increased cooperation on crypto regulation. If relaunched, the committee could help resolve jurisdictional uncertainties, especially in cases where digital assets fall under the purview of both agencies.
This joint regulatory effort comes at a time when both the SEC and CFTC are showing a more open stance towards discussions on cryptocurrency regulation. Recent actions from both agencies indicate a shift towards structured policymaking rather than enforcement-first approaches.
The CFTC recently launched a pilot program to explore the use of tokenized non-cash collateral, such as stablecoins, in derivatives markets. The agency also restructured its Division of Enforcement to prioritize fraud prevention and investor protection.
On the SEC side, the new leadership under Commissioner Mark Uyeda is signaling a departure from previous enforcement-heavy tactics. The agency has been engaging with industry stakeholders to discuss crypto regulations. Additionally, Commissioner Hester Peirce is leading a newly formed Crypto Task Force, emphasizing the importance of clear and predictable guidelines to reduce legal uncertainty and support the growth of the sector.
Overall, these collaborative efforts aim to establish a robust regulatory framework that promotes economic growth while safeguarding market integrity. By working together, the SEC and CFTC seek to address regulatory challenges in the rapidly evolving digital asset landscape.