SEC and CFTC Leaders Propose New Collaborative Approach for Crypto Regulation

Paul Atkins, chairman of the SEC, and Caroline Pham, acting chairman of the CFTC, advocate for enhanced cooperation between their agencies to support digital asset adoption.

Key points from their joint statement issued on Sept. 5:

The SEC and CFTC aim for harmonization between US market regulators.
Regulators must adapt to the evolving digital asset landscape.
Avoiding regulatory gaps is crucial for economic growth.
Commitment to work together under new leadership.

Proposed Crypto-Friendly Reforms

The agencies plan to implement specific actions, including:

Extending US trading hours for 24/7 markets.
Providing clearer rules for predictions and derivatives.
Avoiding conflicting collateral requirements from both agencies.
Exploring innovative exemptions for DeFi and peer-to-peer transactions.

Pham previously emphasized a proactive regulatory approach while moving away from "regulation by enforcement" to create a more supportive environment for crypto markets.