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SEC and CFTC Unveil Coordination Pact to Streamline Overlapping Oversight

The pact creates channels for joint engagement without altering either regulator’s authority.

Overview

  • The agencies on March 11 announced a memorandum of understanding and a Joint Harmonization Initiative targeting areas such as digital assets and other hybrid products.
  • The framework establishes enhanced information sharing, coordinated engagement with market participants, and joint meetings on new products, with an intent to clarify product definitions through joint interpretations and possible rulemaking.
  • The agreement does not supersede laws or change statutory powers, leaving the possibility of actions by both regulators for the same conduct.
  • In FIA remarks, SEC Chair Paul Atkins said duplicative cases should end and directed joint staff reviews of product applications, as the agencies launched a harmonization webpage and invited public comment.
  • Despite the coordination push, the CFTC appears poised to advance an event‑contracts rule following OIRA review, signaling that some rulemaking will proceed on separate agency timelines.