Fox Business Journalist Eleanor Terret wrote on February 13 that the US Securities and Exchange Commission and Commodity Futures Trading Commission are reportedly looking at a shared approach for regulating digital assets.
The initiative also includes a revival of the long-dormant CFTC/SEC Joint Advisory Committee, which served once as a link between both agencies.
The JAC, which was first formed in 2010, was intended to deal with shared concerns regarding regulatory issues. Due to leadership transitions in 2014, the JAC became inactive.
This committee formed part of an overall regulatory harmonization initiative outlined in 2009, which aimed to identify new financial risks and streamline supervision.
The CFTC’s website states:
“Subjects the joint advisory committee was created to address included the identification of emerging regulatory risks, assessment and quantification of the impact of such risks and their implications for investors and market participants, and the agencies’ efforts on regulatory harmonization.”
Terret suggested that acting CFTC Chair Caroline Pham advocated for the committee’s reinstatement, seeing it as a step toward greater cooperation on crypto regulation.
If relaunched, the JAC could help resolve jurisdictional uncertainties, particularly in cases where digital assets fall under both agencies’ purview.
Crypto-regulatory efforts
The move aligns with a shifting regulatory landscape in which the SEC and CFTC appear more open to crypto-related discussions.
Both financial regulators have recently taken actions that indicate a greater emphasis on policy-making than enforcing first.
The CFTC has recently launched a pilot to examine tokenized noncash collateral such as stablecoins in derivatives market.
A new division of enforcement was created to focus on fraud prevention, investor protection and other important issues.
On the other hand, the SEC’s new leadership is signaling a departure from Gary Gensler’s previous enforcement-heavy tactics. The agency invited the industry to meet with Commissioner Mark Uyeda and discuss cryptocurrency regulations.
Hester P. Peirce is also the new leader of a Crypto Task Force, which was recently formed. Notably, Peirce has consistently emphasized the need for clear, predictable guidelines to eliminate legal uncertainty and reduce unnecessary obstacles hindering the sector’s growth.
This latest effort focuses on creating a robust framework for regulation that promotes economic growth, while maintaining the integrity of markets.
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