SEC and CFTC Formalize Joint 'Project Crypto' as CFTC Pulls Event-Contract Ban

Overview

• The agencies confirmed an expanded joint Project Crypto to align federal oversight of digital-asset trading after Jan. 29 speeches and a Jan. 30 legal brief.
• The plan calls for a shared crypto-asset taxonomy, clearer securities–commodity boundaries, and fewer duplicate registrations for firms regulated by both bodies.
• Leaders pledged a shift to principle-based rules using a “minimum effective dose” rather than reliance on case-by-case enforcement actions.
• A forthcoming memorandum of understanding will establish data sharing, joint surveillance, weekly leadership calls, plus coordinated rulemaking.
• The CFTC withdrew proposed restrictions on political and sports event contracts and began new rulemaking for prediction markets, with analysts saying platforms such as Coinbase could benefit.