Acting CFTC Chair: "The Turf War with the SEC Over Crypto Regulation Is Over"

The U.S. Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) are ending a long-running dispute over regulatory authority for virtual assets (cryptocurrencies) and shifting to a cooperative approach.

On the 30th (local time), according to The Block, Caroline Pham, Acting Chair of the CFTC, said at a CFTC- and SEC- hosted roundtable, "A new era has opened. The turf war is over." Until now, the two agencies had clashed over whether virtual assets are commodities or securities and thus which agency has authority.

Pham said, "Because both agencies oversee adjacent areas of the financial markets, regulatory boundaries were often unclear," adding, "This led to unnecessary friction between agencies and imposed unnecessary burdens on market participants."

In Washington, discussions are underway on the enactment of the 'Clarity Act.' The bill is a comprehensive piece of legislation governing the structure of the virtual asset market and, if passed, could further expand the CFTC's authority. Accordingly, the mode of cooperation with the SEC is expected to have significant implications for the industry.

Meanwhile, regarding speculation about a merger between the SEC and the CFTC, Paul Atkins, SEC Chair, dismissed it, saying, "Our focus is cooperation, not a merger," and, "Rather than wasting time on fanciful discussions of government reorganization, we should seize the important opportunities in front of us."

Representatives of major financial firms and virtual asset companies such as Kalshi, Kraken, Polymarket, Robinhood Markets, Bank of America, and J.P. Morgan attended the roundtable and continued discussions.