SEC and CFTC Deny Merger Focus on Harmonization
- SEC and CFTC reject merger, enhance crypto regulations via coordination.
- Increased cross-agency collaboration set to promote market clarity.
- Focus on spot crypto, derivatives, and DeFi regulations remains distinct.
SEC Chair Paul Atkins and CFTC Acting Chair Caroline D. Pham rejected a merger of their agencies, highlighting their focus on coordination in digital asset regulation.
This decision aims to enhance regulatory clarity and support innovation in U.S. crypto markets without merging authorities, potentially stabilizing market expectations and fostering long-term institutional involvement.
SEC Chair Paul Atkins and CFTC Acting Chair Caroline D. Pham confirmed no merger will occur, focusing instead on collaborative regulation efforts, as reported in September 2025.
Regulatory harmony aims to provide clarity, boosting market stability and ensuring innovation facilitation without merging responsibilities.
Regulatory Strategy Focuses on Coordination, Not Merging
The SEC and CFTC have declared a strategy to coordinate regulation without merging. This announcement strengthens their focus on delivering clear rules for crypto markets and alleviating mixed signals from past policies.
Paul Atkins highlighted that harmonization does not mean merger, while Caroline Pham emphasized a shift from a climate where innovation wasn’t welcomed. These agencies are working hand in glove to provide structural clarity.
Potential Stability from Unified but Distinct Approaches
There has been no immediate increase in U.S. regulatory allocations, yet the potential for stable market conditions is evident. Clear rules may enable healthier participation in crypto markets, benefiting liquidity in the long term.
The absence of agency merging is expected to promote distinct but unified approaches to crypto regulations. Industry stakeholders consider this move a positive step toward comprehensive and stable regulatory practices.
Past Initiatives Set Stage for New Coordination
Previous SEC/CFTC initiatives like Project Crypto and Crypto Sprint laid the groundwork for this new chapter of coordination. Market participants anticipate continuing stability amid these regulatory harmonization strategies.
Current market analysis indicates a gradual increase in institutional involvement due to reduced regulatory risks. Long-term stability for assets like BTC, ETH, and DeFi tokens is increasingly feasible under coordinated U.S. oversight.
“A key priority of my Chairmanship is clear rules of the road for the issuance, custody, and trading of crypto assets while continuing to discourage bad actors from violating the law. We’re working hand in glove with the CFTC to create clarity—this is regulatory coordination, not consolidation.” – Paul Atkins, Chair, SEC, September 2025
SEC and CFTC Staff Issue Joint Statement on Trading Certain Spot Crypto Asset Products
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