SEC and CFTC aim to harmonize crypto rules, boost US market leadership
The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will maintain a joint roundtable on Sept. 29 to advance regulatory coordination within the digital asset sector.
In a Sept. 5 joint statement, the businesses mentioned fragmented oversight previously had discouraged innovation and pushed some crypto exercise abroad. They pressured that harmonization is now not non-obligatory, noting {that a} failure to coordinate has created uncertainty that hinders financial exercise even when merchandise are legally permissible.
SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline Pham emphasised that harmonization can decrease obstacles, enhance effectivity, and reaffirm US leadership in monetary markets.
According to the monetary regulatory chiefs:
“By working in lockstep, our two businesses can harness our nation’s distinctive regulatory construction right into a supply of power for market contributors, traders and all Americans.”
The occasion follows the President’s Working Group on Digital Asset Markets suggestions, which urged regulators to create a fit-for-purpose framework that helps innovation whereas defending traders.
Key priorities
The Sept. 29 roundtable will look at measures to align US markets with the worldwide, always-on financial system.
Among the priorities into consideration is the growth of buying and selling hours throughout choose asset courses. The monetary regulators mentioned markets akin to overseas change, gold, and crypto already function constantly, and extending buying and selling home windows might enhance liquidity whereas sustaining investor protections.
The businesses additionally plan to overview frameworks for prediction markets and perpetual contracts. By clarifying guidelines for event-based contracts and onshoring compliant perpetual swaps, they aim to channel extra buying and selling exercise again to US platforms.
Another proposal facilities on portfolio margining. A coordinated framework might enable companies to acknowledge offsetting positions throughout asset courses and scale back capital inefficiencies.
The SEC and CFTC pressured that harmonized margin necessities would make web exposures simpler for market contributors whereas preserving danger safeguards.
The businesses additional intend to discover exemptions that present protected harbors for decentralized finance (DeFi) projects. These exemptions would create structured environments for peer-to-peer buying and selling of spot, leveraged, or margined merchandise with out undermining investor safety requirements.
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