TL;DR
- The SEC and CFTC have ended their jurisdictional rivalry and are now coordinating on crypto regulation.
- The SEC’s 2026 agenda focuses on a token taxonomy, an innovation exemption, and its Project Crypto framework.
- Tokenization is a priority, with a limited pilot approved for assets like U.S. Treasuries and major ETFs.
The U.S. crypto regulatory environment enters 2026 under renewed coordination between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC). The agencies, once perceived as rivals in the oversight of digital assets, now operate under a more aligned framework that seeks to define rules for tokenization, exemptions, and digital asset classification.
The shift follows a turbulent period during the Biden administration when both regulators engaged in a jurisdictional battle. The former CFTC chair, Rostin Behnam, claimed that most cryptocurrencies should fall under commodity regulation, while ex-SEC chair Gary Gensler insisted nearly all tokens, except Bitcoin, were securities.
In late 2025, that conflict came to an end. The CFTC’s Acting Chair announced that the “turf war” had concluded, emphasizing joint regulatory efforts. Over the following months, the two agencies issued joint guidance allowing registered exchanges to facilitate trading of certain spot crypto assets while prioritizing perpetual contracts, 24/7 markets, and decentralized finance.
A Cooperative Framework and a Broadened Agenda
Howard Fischer, a partner at Moses & Singer LLP and former SEC senior trial counsel, described the evolution of this relationship: “For the first time, the SEC and CFTC are working together in a more coordinated way.” He added that 2026 will likely see deeper cooperation as both agencies address overlapping mandates.
The SEC’s 2026 agenda centers on three primary goals: defining a “token taxonomy,” creating an “innovation exemption” for new products, and advancing Project Crypto, which updates the agency’s framework for digital assets.
At the Blockchain Association Policy Summit in Washington, D.C., Commissioner Atkins declared that the SEC’s reform process “is just getting started.” His office confirmed that the agency is working to differentiate which tokens qualify as securities and which fall outside its jurisdiction.
In 2025, the SEC also approved listing standards for several crypto exchange-traded funds (ETFs), allowing firms to launch products tracking DOGE, SOL, and XRP. The agency later issued guidance excluding liquid staking and proof-of-stake activities from securities classification—an adjustment widely welcomed by the market.
The Division of Trading and Markets further outlined custody procedures for broker-dealers managing crypto asset securities, marking an incremental but concrete regulatory step.
Tokenization Takes Center Stage
Tokenization has become a defining issue for regulators. The SEC views it as an opportunity to integrate real-world assets (RWAs) into blockchain infrastructure while maintaining investor protections. Under a new No-Action Letter to the Depository Trust Company (DTC), the agency granted permission to tokenize limited asset categories, including Russell 1000 constituents, U.S. Treasuries, and major equity ETFs.
Regulatory attorney Snyder described the move as a controlled pilot: “These are limited in scope, size, and participation. The intent is to test tokenization under regulatory supervision.”
However, Fischer remains cautious. He compared the SEC’s tokenization initiative to its climate disclosure rules adopted in 2024, saying the challenge lies in translating complex, non-financial data into legally material information for investors.
Balancing Oversight and Market Growth
The coming year presents a key test for how regulators treat digital assets — whether crypto becomes a “special category” or adapts within existing U.S. financial frameworks. With the CFTC gaining broader oversight authority and a new chair expected in 2026, institutional engagement may rise, particularly in derivatives and commodity-linked tokens.
For now, both agencies appear aligned on one principle: crypto market regulation must combine transparency, investor protection, and operational flexibility. The SEC-CFTC partnership will likely define how the United States approaches digital assets through the remainder of the decade.
