Crypto Crackdown Or Clarity? CFTC And SEC Evaluate Regulations

The United States’ financial regulators are stepping up their discussions about how to regulate crypto. Discussions have been taking place between the Commodity Futures Trading Commission (CFTC) and Securities and Exchange Commission (SEC) staff members with the goal of improving coordination.

Caroline Pham, the CFTC Commissioner, confirmed the renewed conversations, highlighting the importance of closer cooperation.

Through a post on X, FOX Business correspondent Eleanor Terrett disclosed Pham’s responses to the ongoing discussions.

A Call for Increased Collaboration

The CFTC and SEC have not been able to agree for a long time on how to handle digital assets. Former SEC chairman Gary Gensler launched enforcement actions against several crypto companies. On the other hand, the CFTC has constantly argued for a more fair approach. Pham’s comments imply a will to start regular cooperation between the two regulatory bodies.

NEW: Acting @CFTC Chair @CFTCpham says the @SECGov and @CFTC staffers are talking and engaging on digital assets and other matters.

“We have restarted conversations at the staff level between the CFTC and SEC. We would like to work together. We have worked together well in the… pic.twitter.com/9WIKZOOJwp

— Eleanor Terrett (@EleanorTerrett) March 5, 2025

It is crucial to identify which government agency has authority over certain types of digital assets. Most cryptocurrencies are considered securities by the SEC, but commodities by the CFTC, including Bitcoin. This ongoing debate has created uncertainty in the industry, with businesses unsure which rules to follow.

Congress Intervenes

The regulatory uncertainty has been the subject of lawmakers’ pursuit of solutions. In an effort to establish a Joint Advisory Committee, Rep. John Rose recently introduced the BRIDGE Digital Assets Act. The objective of the JAC is to offer guidance to the SEC and the CFTC regarding their respective policies, regulations, and rules regarding digital assets.

“The United States must provide a future where digital assets can thrive,” Rep. Rose said. The current “heavy-handed, regulation-by-enforcement approach isn’t working”, the congressman said, and is instead encouraging investment in this important innovation overseas.

“The Joint Advisory Committee on Digital Assets will provide a framework for the government and private sector partners to cooperate on a path toward success for the regulatory landscape of digital assets and private sector participants,” Rose pointed out.

Clear guidelines for the crypto industry continue to be elusive, despite the renewed discussions. Pham recognized the necessity of increased predictability and transparency in regulatory processes. The industry continues to encounter compliance challenges and legal disputes in the absence of a structured framework.

“We have restarted conversations at the staff level between the CFTC and SEC. We would like to work together. We have worked together well in the past and I look forward to getting back to regular order,” Pham said.

Meanwhile, critics of the SEC’s enforcement-heavy approach have some industry players claiming it stifles innovation. Some contend that rigorous control is absolutely necessary to protect investors against fraud and market manipulation. The CFTC’s open communication points to a possible shift to a more cooperative regulatory model.

Whether the most recent conversations lead to any actual changes is unknown. Although the creation of the Joint Advisory Committee will need political support, it might be a first step towards a more unified approach. Until then, the crypto industry will continue navigating regulatory uncertainty.

Featured image from Gemini Imagen, chart from TradingView