SEC, CFTC Host Joint Crypto Harmonization Event as U.S. Pushes Regulatory Clarity

Key Takeaways:

  • SEC and CFTC will conduct a joint public gathering on Jan 27 to bring U.S. crypto regulation into harmony.
  • Agency leaders seek to cut AI redundancy causing stunted crypto progress.
  • The event supports the U.S. goal of strengthening its leadership in digital assets.

The U.S. Securities and Exchange Commission and the Commodity Futures Trading Commission are making a joint move to a more clarified crypto regulation. The following week, the two agencies collectively will organize a public event that aims at regulatory harmonization and U.S financial leadership during the crypto era.

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SEC and CFTC Signal Closer Coordination on Crypto

The SEC will collaborate with CFTC on hosting an hour-long public discussion, January 27, 10: 00-11:00 a.m. ET, CFTC headquarters, in Washington, D.C. The event will be accessible to the media and also broadcasted online.

The session will be organized by SEC Chair Paul Atkins and CFTC Chair Michael Selig. Atkins will provide the introductory part of the presentation and Selig will make some remarks. These two chairs will then take part in a fireside chat as facilitated by crypto journalist Eleanor Terrett.

The event by both regulators was obtained as the response to the long-term regulatory confusion in the U.S. crypto markets. They admitted in a collaborative statement that companies have had difficulties with ambiguous and conflicting regulations that are formed by the traditional jurisdiction lines and not digital medium asset frameworks.

Read More: US Lawmakers Flag “Pay-to-Play” Fears as SEC Drops 12 Crypto Cases, Pauses Justin Sun Probe

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Addressing Regulatory Overlap in U.S. Crypto Markets

The crypto companies in the U.S have been running in years, with uncertainty as to whether their assets are subject to securities law or commodities law; or both. This uncertainty has worsened compliance expenses, lengthened the product release process and driven part of innovation out of- country.

The joint event will directly solve such problems by enhancing coordination between the two agencies which have the most stake in crypto oversight. Though there are no new regulations to be anticipated, the conference was able to shed some light on how both SEC and CFTC intend to collude with each other when regulating spot markets, derivatives, and new on-chain forms of financial products.

The time is interesting because legislators are still in the discussion of legislation on the cryptocurrency market structure that would determine the agency functions. Coordinated messages by regulators can minimize uncertainty when it comes to enforcement, even in the absence of new laws, and enhance market confidence.

Read More: SEC Chair Flags $60B Venezuelan Bitcoin Rumor as Unclear While Pushing U.S. Crypto Law Overhaul

Event Aligns With U.S. Crypto Leadership Goals

The SEC- CFTC partnership is also connected to the wider political agenda to establish the U.S. as the international crypto leader. More regulatory coordination has become more apparent as other markets proceed with common digital assets frameworks.

With the continued growing popularity of stablecoins, tokenized assets and blockchain finance infrastructure, regulatory clarity has emerged as one of the competitive advantages. The participants of the market will be keen on all these events to see indications on the strategy to be taken on the enforcement and inter-agency collaboration and future involvement with the crypto industry.

The collective look in itself indicates a change in tone, raising the expectation that the regulators of the United States are starting to put more focus on coordination as crypto becomes included in the area of mainstream financial markets.

Source: https://www.cryptoninjas.net/news/sec-cftc-host-joint-crypto-harmonization-event-as-u-s-pushes-regulatory-clarity/