SEC-CFTC Alignment Cuts Risk of Overlapping Enforcement Actions

SEC and CFTC Advance Crypto Policy Alignment Efforts

U.S. Commodity Futures Trading Commission (CFTC) Chair Michael S. Selig said connected May 12 that the bureau is working with the Securities and Exchange Commission (SEC) connected regulatory oversight, rulemaking, and enforcement alignment crossed progressively connected fiscal markets. Speaking astatine the FINRA 2026 Annual Conference successful Washington, Selig besides highlighted information successful the SEC’s Project Crypto and enactment connected a crypto plus taxonomy aimed astatine improving regulatory clarity.

As securities and derivatives enactment progressively intersect, regulators look unit to trim gaps betwixt their rulebooks. Selig noted the CFTC and SEC person taken respective steps toward much unified oversight wherever their jurisdictions meet. Those efforts see a memorandum of understanding, a associated harmonization initiative, and expected associated requests for remark tied to portfolio margining and swap information reporting.

Regulators are besides moving to amended align CFTC swap reporting requirements with SEC Regulation SBSR, the model governing security-based swap reporting. Much of the coordination effort spans broader securities and derivatives oversight, though crypto argumentation initiatives featured prominently successful the discussion. Selig detailed:

“In caller months, we’ve entered into a memorandum of understanding, launched a associated harmonization initiative, joined the SEC’s Project Crypto, and precocious a common-sense crypto plus taxonomy to present clarity to our nation’s builders and innovators.”

Broader coordination betwixt the agencies besides extends to enforcement activity. Selig stated that parallel actions and accusation sharing person reduced the hazard of duplicative oregon inconsistent outcomes tied to the aforesaid underlying conduct. Staff collaboration betwixt the agencies, helium added, tin streamline compliance efforts and amended regulatory effectiveness crossed overlapping jurisdictions.

FINRA and NFA Face Growing Cross-Market Oversight Demands

Self-regulatory organizations besides request person alignment arsenic marketplace enactment cuts crossed securities and commodity derivatives, Selig explained. FINRA and the National Futures Association (NFA) progressively run successful overlapping territory, leaving firms taxable to some regulatory structures successful ways older frameworks did not ever anticipate.

Coordinated examinations, stronger recordkeeping alignment, and shared surveillance practices could assistance regulators and marketplace participants negociate those overlapping obligations much efficiently. Selig framed the effort arsenic practice alternatively than consolidation. He noted that alignment should sphere each organization’s specialization portion improving consistency wherever coordination adds value. Selig described the opportunity, stating:

“We person a existent accidental present for greater collaboration. Not to merge identities oregon flatten important differences, but to align the organizations successful ways that assistance regulators and marketplace participants.”

Legal and compliance teams could payment from clearer coordination crossed agencies and self-regulatory organizations, Selig said. He added that much accordant oversight standards whitethorn assistance firms trim interpretive risk, little compliance costs, and allocate resources much efficaciously successful fast-moving fiscal markets.