On September 5, the SEC and CFTC issued a joint statement outlining new regulatory coordination as the markets for securities and non-securities become increasingly intertwined. SEC Chair Paul Atkins and CFTC Acting Chair Caroline Pham emphasized that “harmonization” between market regulators was essential to the development of “innovative products,” and announced a joint SEC-CFTC roundtable on regulatory harmonization to be held on September 29.
The statement highlighted several priorities for coordination, including consideration of expanded 24/7 trading hours for certain products, a collaborative approach to event contracts and perpetual contracts, and the development of a coordinated framework for portfolio margining. The agencies also indicated they are prepared to consider “innovation exemptions” and safe harbors for decentralized finance protocols, potentially allowing peer-to-peer trading of crypto assets and related products.
Atkins and Pham stressed that both the failure to coordinate and regulatory uncertainty had “chilled” economic activity, even in instances where the products “would otherwise be allowable under federal law.” The agencies called for “harmonizing product and venue definitions,” “streamlining reporting and data standards,” and “aligning capital and margin frameworks” to advance U.S. competitiveness. The statement concluded by reaffirming the agencies’ commitment to foster a regulatory environment that would allow U.S. businesses to “flourish, innovate, and lead in global markets.”
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