SEC and CFTC jointly hold regulatory coordination event, reshaping the regulatory framework for the crypto industry imminent

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) will hold a joint event next Tuesday at the CFTC headquarters titled “Coordination and U.S. Financial Leadership in the Crypto Era.” This publicly accessible event, which will be live-streamed on the official website, sends a clear signal: the two major regulatory agencies are actively advancing regulatory coordination in the cryptocurrency space, attempting to break the long-standing issue of unclear regulatory boundaries that has plagued the industry.

A Critical Moment in Reshaping the Regulatory Framework

Why are the two agencies teaming up now

According to the latest news, SEC Chairman Paul Atkins and CFTC’s newly appointed Chairman Mike Selleck were both appointed by Trump. This background is significant—the two new leaders have a clear mission: on one hand, to support innovation and development; on the other, to establish a clear legal framework. This joint event essentially signals to the market: the new regulatory leadership intends to break the previous “siloed” approach.

For a long time, the responsibilities of the SEC and CFTC have been blurred, leading to dilemmas where crypto project teams, exchanges, and even investors are unsure of whom to listen to. Who should regulate Bitcoin and Ethereum? Are DeFi tokens securities or commodities? These questions have no clear answers under the current framework.

Chain reaction of recent regulatory signals

This event is not an isolated incident but a concentrated reflection of a series of regulatory movements:

• CFTC Chairman Selleck appointed veteran crypto lawyer Michael Passalacqua as senior advisor, who previously pushed the SEC to issue a no-action letter allowing state-chartered trust companies to serve as cryptocurrency custodians
• The SEC terminated its investigation into Zcash on January 15, with no enforcement action taken, seen as a “breakthrough” signal in privacy coin regulation
• Both agencies have demonstrated their focus on the crypto sector through personnel appointments

All these actions indicate that a new regulatory approach is forming: shifting from past “one-size-fits-all” suppression to “precise differentiation and pragmatic regulation.”

The Practical Dilemma Behind the Event

Why is coordination necessary

According to recent analyses, the U.S. Congress is pushing legislation such as the “Clarity Act” to establish a clear legal framework for digital assets. However, this process exposes an awkward reality:

With such resource allocation, continued dispersal of regulatory authority could lead to regulatory gaps. The joint activity between SEC and CFTC is, to some extent, preparing for upcoming power consolidation.

Potential Industry Impact

Short-term highlights

The live broadcast and public openness of this event mean that SEC and CFTC will articulate their coordination approach externally. The market will look for several key signals:

• Whether the regulatory positioning of mainstream assets like Bitcoin and Ethereum becomes clearer
• Specific paths for stablecoin regulation
• Attitudes toward infrastructure like exchanges and custodians
• Plans for emerging sectors such as DeFi

Medium- to long-term trends

In my personal view, this event indicates that crypto industry regulation is transitioning from a “chaotic period” to an “orderly period.” Specific manifestations may include:

• Improved consistency in regulatory frameworks, reducing compliance costs for project teams
• Lower entry barriers for institutional investors due to clearer rules
• Certain long-suppressed sectors (e.g., privacy coins) may gain new development opportunities
• However, regulatory requirements will also become more stringent and explicit

Summary

This joint event between the SEC and CFTC is not just an information release but a key milestone in reshaping the crypto industry’s regulatory framework. The appointment of new regulators, resource reallocation, and recent policy signals all point in the same direction: the U.S. is attempting to establish a clearer, more coordinated cryptocurrency regulatory system.

This presents both opportunities and challenges for the industry. The opportunity lies in clearer rules and understanding how to comply; the challenge is that regulations will become stricter. Next week’s event is worth paying attention to, as it may give us a glimpse into the regulatory trajectory of the crypto industry over the next two to three years.