CFTC and SEC Sign MOU for Lawful Innovation

CFTC Press Releases

Published March 11th, 2026

Detected March 12th, 2026

Summary

The CFTC and SEC have signed a Memorandum of Understanding (MOU) to enhance coordination and collaboration on lawful innovation, market integrity, and investor protection. The MOU establishes a Joint Harmonization Initiative to clarify definitions, modernize frameworks, and streamline reporting for areas of common regulatory interest, including crypto assets.

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What changed

The Commodity Futures Trading Commission (CFTC) and the Securities and Exchange Commission (SEC) have entered into a Memorandum of Understanding (MOU) to foster collaboration and harmonize regulatory approaches. This agreement aims to support lawful innovation, maintain market integrity, and protect investors by clarifying definitions, coordinating oversight, and streamlining reporting for areas of mutual interest, such as crypto assets and emerging technologies. A Joint Harmonization Initiative has been established to advance these goals.

This MOU signifies a commitment to reduce duplicative regulations and close existing gaps, thereby enhancing U.S. competitiveness in financial markets. Market participants, particularly those involved with crypto assets or dually registered entities, should review the initiative's focus areas. While this MOU is non-binding, it signals a coordinated effort that may lead to future joint rulemakings or interpretations. Public input is encouraged through the provided channels.

What to do next

Review the CFTC and SEC websites for details on the Joint Harmonization Initiative.
Assess current operations for potential overlap or gaps addressed by the MOU, particularly concerning crypto assets and dually registered entities.
Consider submitting public input on areas of common regulatory interest.

Source document (simplified)

Release Number 9192-26

CFTC and SEC Announce Historic Memorandum of Understanding Between Agencies

March 11, 2026

WASHINGTON — The Commodity Futures Trading Commission and Securities and Exchange Commission today announced that they have entered into a Memorandum of Understanding (MOU) to guide coordination and collaboration between the two agencies to support lawful innovation, uphold market integrity, and ensure investor and customer protection. The MOU reflects both agencies’ commitment to provide fair notice to market participants, respect individual liberty, and foster lawful innovation with the minimum effective dose of regulation to enhance U.S. competitiveness in finance.

“America’s financial markets are the envy of the world because they scale and adapt to meet investor demands. Like our markets, the CFTC’s and SEC’s regulatory frameworks must also evolve and modernize to accommodate the needs of our market participants,” said CFTC Chairman Michael S. Selig. “This Memorandum of Understanding solidifies the agencies’ commitment to harmonize regulatory frameworks to provide comprehensive and seamless financial market oversight. By working together, we’ll eliminate duplicative, burdensome rules and close gaps in regulation for the benefit of all Americans and usher in a Golden Age of American finance.”

“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,” said SEC Chairman Paul S. Atkins. “This updated Memorandum of Understanding will serve as a roadmap for a new era of harmonization between the agencies – one that is critical to support U.S. leadership in this next chapter of financial innovation. By aligning regulatory definitions, coordinating oversight, and facilitating seamless, secure data sharing between agencies, we will ensure our rules and regulations deliver the clarity market participants deserve.”

In conjunction with the MOU, the agencies created a Joint Harmonization Initiative to advance coordinated oversight and promote regulatory clarity in areas of common regulatory interest. The Initiative will support coordination across the policymaking, examination and enforcement functions of each agency, particularly for joint applications and shared policy efforts, including:

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.
Coordinating cross-market examinations, economic analyses, risk monitoring, surveillance, and enforcement. The Joint Harmonization Initiative will be co-led by Meghan Tente (CFTC) and Robert Teply (SEC).

This announcement follows previously announced efforts to harmonize the agencies’ regulatory frameworks, which is further described on the CFTC website and SEC website. Public input is encouraged and may be submitted through the written input form or a meeting request.

-CFTC-