The SEC and CFTC collaborate to end "enforcement-style regulation" as the U.S. aims to become the global capital of encryption innovation.

Officials from the Commodity Futures Trading Commission (CFTC) and the SEC announced that the two agencies have entered a “new era of cooperation” to jointly bring regulatory clarity to the crypto market. CFTC Acting Chair Caroline Pham stated that both sides are moving from years of “enforcement-style regulation” to “coordinated uniformity.” This joint effort aims to make the United States a global hub for crypto innovation and plans to introduce Spot crypto trading on one of the futures exchanges by the end of the year, prompting several crypto companies to return to the U.S. market to expand their business.

CFTC Launches “Crypto Sprint” Targeting Global Crypto Capital Status

CFTC acting chair Caroline Pham revealed in an interview the agency's proactive plan to make the United States a global crypto capital.

• Regulatory Coordination: Pham emphasized that the joint efforts aim to achieve coordinated and unified regulation, rather than competition.
• Spot Trading Implementation: The plan includes launching listed spot encryption trading on one of its futures exchanges by the end of the year.
• CFTC's Roadmap: CFTC Crypto Sprint is in the mid-term of its 12-month plan aimed at implementing the recommendations of the presidential working group on digital assets. Additionally, the CFTC will issue guidance on tokenized collateral, including stablecoins, by the end of the year.
• Blockchain Integration: Next year, the agency will propose technical amendments to rules covering collateral, margin, clearing, and settlement, with the aim of integrating blockchain technology into the existing regulated financial system. Pham stated, “We have ended the regulatory desert,” and noted that this coordinated approach has attracted crypto companies to flow back to the United States.

SEC and CFTC Join Forces: Ending the Regulatory “Territorial War”

SEC Chairman Paul Atkins had previously rejected the proposal to merge the two regulatory agencies, emphasizing instead that cooperation and coordination are the key. This new cooperative relationship has emerged.

• Resolving the “Turf War”: Atkins believes that the “turf war” among regulatory agencies has delayed innovation for many years and points out that attempts like single-stock futures have failed due to unclear jurisdiction.
• Return to “Normal Order”: Pham agreed, stating that this cooperation is a return to “normal order” and an opportunity to provide certainty to the market. Both parties will work together to address issues such as portfolio margin, outdated financial regulations, and innovations in encryption and digital assets exemptions.
• Regulatory Tone Shift: The CFTC's new crypto roadmap and coordination with the SEC signify a significant shift in Washington's attitude towards digital assets. This coordinated approach reflects the growing consensus on regulated Spot crypto trading in the U.S..

Regulatory clarity takes effect, crypto companies return to expand in the United States

For years, crypto companies have complained about unclear rules and punitive enforcement actions. This new initiative marks a departure from the past for regulation, shifting towards a structured and collaborative framework.

• Investment and Recruitment Reflow: Pham stated that regulatory clarity has begun to take effect. Some crypto companies that had planned to move their operations overseas are now expanding in New York and the West Coast. “This is what happens when you replace uncertainty with commitment,” she concluded.
• Institutional Participation Reshaping: With the agreement reached by the two agencies, the U.S. market may soon see its first fully regulated Spot encryption trading environment, which will reshape the way institutional investors participate in digital assets.

Conclusion

The “new era of cooperation” established by the SEC and CFTC is of milestone significance for the crypto industry in the United States and globally. It not only puts an end to the long-standing “enforcement-style regulation” uncertainty that has troubled the market, but also paves the way for blockchain innovation to take root and flourish in the United States. With the improvement and clarity of the regulatory framework, the United States is expected to attract more **crypto investments, talent, and companies, becoming a veritable global crypto innovation hub, greatly promoting the process of digital asset mainstreaming.

Disclaimer: This article is for news information only and does not constitute any investment advice. The crypto market is highly volatile, and investors should make decisions cautiously.