CFTC Partners With SEC On ‘Project Crypto’ For Unified Regulatory Approach

The Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have introduced they’re relaunching the Project Crypto initiative as a joint coverage effort to organize US markets for the digital period.

SEC-CFTC Joint Efforts For Project Crypto

On Thursday, CFTC Chairman Michael Selig revealed that the regulatory company is partnering with the SEC on its Project Crypto initiative to deliver “coordination, coherence, and a unified method to the federal oversight of crypto asset markets.”

At a joint event on regulatory harmonization, Selig and SEC Chairman Paul Atkins outlined their plan to advance a transparent crypto asset taxonomy, make clear jurisdictional traces, take away duplicative compliance necessities, and cut back regulatory fragmentation by way of their partnership.

The SEC-CFTC harmonization agenda will give attention to the basics, because the chairmen detailed, together with aligned definitions, coordinated oversight, and seamless, safe information sharing between companies. “Harmonization strengthens requirements by way of coherence, predictability, and financial rationality.”

The companies purpose to make sure that “innovation takes root on American soil, below American legislation, and in service of American buyers, prospects, and companies,” Selig affirmed throughout his opening remarks.

He added that he had directed the CFTC workers to work with the SEC to review “joint codification” of the commonsense crypto asset taxonomy just lately laid by Atkins, “as an interim measure whereas Congress finalizes laws.”

In a joint assertion shared by the CFTC, the pro-industry chairmen defined that Project Crypto was designed to make sure that the US is able to reinforce its international monetary management when Congress acts:

At its core, Project Crypto and our broader harmonization efforts mirror a shared philosophy: monetary regulation should be exact, not punitive. Rules should be narrowly tailor-made to deal with materials dangers, nimble sufficient to adapt to technological change and stay anchored in our companies’ statutory authorities.

Innovation Exemption Timeline Pushed Back

During the panel, Chair Atkins mentioned the timeline for the Commission’s long-awaited innovation exemption for the crypto {industry}, which was initially anticipated to return earlier than the tip of January.

As reported by Bitcoinist, the SEC chair mentioned in December that the regulatory company may problem innovation exemption guidelines for crypto companies in early 2026. Notably, the Commission has been learning a rule exemption since July 2025.

The measure would enable crypto companies to rapidly launch merchandise by complying with “sure principles-based circumstances designed to realize the core coverage goals of the federal securities legal guidelines” as a substitute of “burdensome prescriptive regulatory necessities that hinder productive financial exercise.”

Atkins affirmed that the company remains to be engaged on the innovation exemption, arguing that they “have to measure twice and lower as soon as.” As he outlined, the company desires to ship a rule change that’s “match for objective that may enable sufficient individuals to have the ability to develop their merchandise, you recognize, inside a predictable ambit of maneuver after which with an finish date, an off-ramp, that form of factor.”

In addition, he famous that final yr’s authorities shutdown delayed progress on crypto regulation, including that the potential new shutdown may additional delay the extremely anticipated measure.

Atkins denied that the SEC is ready on the market structure bill to place out the innovation exemption, arguing that it’s inside the company’s authority. However, he emphasised that they’re taking the upcoming regulation into consideration as a result of “there are a variety of shifting components to the scenario.”

“I simply wish to make it possible for we preserve the prepare going ahead at full pace and for all events’ sake,” he asserted, however didn’t provide a brand new potential timeline for the innovation exemption rollout.

Meanwhile, Chair Selig additionally shared his plan to discover “methods by which the company can encourage innovation in software program growth and assist builders as they work towards product market match.” This contains assessing whether or not an innovation exemption “could also be acceptable in sure circumstances.”