SEC, CFTC Sign Memorandum of Understanding to Coordinate Oversight

The agencies said the MOU is intended to "guide coordination and collaboration between the two agencies to support lawful innovation, uphold market integrity, and ensure investor and customer protection," according to the announcement. The agencies said the announcement follows previously announced efforts to harmonize their regulatory frameworks.

SEC Chairman Paul S. Atkins, who referred to the document as an "updated Memorandum of Understanding," said in a statement that "for decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions."

Atkins said the document "will serve as a roadmap for a new era of harmonization between the agencies" and described its aims as "aligning regulatory definitions, coordinating oversight, and facilitating seamless, secure data sharing between agencies."

CFTC Chairman Michael S. Selig said the MOU "solidifies the agencies' commitment to harmonize regulatory frameworks to provide comprehensive and seamless financial market oversight." Selig said the agencies would "eliminate duplicative, burdensome rules and close gaps in regulation" and "usher in a Golden Age of American finance."

The Joint Harmonization Initiative will address six areas, according to the announcement: clarifying product definitions through joint interpretations and rulemakings; modernizing clearing, margin, and collateral frameworks; reducing frictions for dually registered exchanges, trading venues, and intermediaries; providing a "fit-for-purpose regulatory framework for crypto assets and other emerging technologies"; streamlining regulatory reporting for trade data, funds, and intermediaries; and coordinating cross-market examinations, economic analyses, risk monitoring, surveillance, and enforcement.

The initiative will be co-led by Robert Teply for the SEC and Meghan Tente for the CFTC, the agencies said. The SEC said public input may be submitted through a written input form or meeting request.