The CFTC and SEC are stepping up their joint work on crypto policy, acknowledging the lines between digital assets, securities, and derivatives have gotten too fuzzy for either agency to handle alone. CFTC Chair Michael Selig pointed to a new memorandum of understanding, shared participation in Project Crypto, and a joint crypto asset taxonomy as the tools driving the effort.
Why the push now
The overlap between crypto, securities, and derivatives markets has grown fast this year. More tokens trade like securities one day and commodities the next. Some products blend features from both sides. That's made old jurisdictional boundaries a headache for firms and regulators alike. Both agencies have been feeling the pressure to speak with one voice on enforcement and rulemaking.
The tools they're using
Selig laid out three concrete pieces. First, a memorandum of understanding that formalizes how the two agencies share information and coordinate investigations. Second, joint participation in Project Crypto — a multi-agency initiative that's already been testing cross-border data sharing. Third, a shared taxonomy to classify digital assets. That taxonomy is supposed to settle once and for all whether a token is a security or a commodity, at least from the regulatory perspective. Selig called it “a practical step toward clarity.”
What happens next
The SEC and CFTC haven't set a public deadline for the taxonomy's release, but Selig's remarks suggest it will be the centerpiece of the new framework. Expect a draft for public comment later this year. For now, firms operating in both regimes should watch for more joint enforcement actions — the MoU makes those easier to pull off. One thing's certain: the era of regulatory silos in crypto is ending faster than most expected.
