TL;DR
- The SEC and the CFTC launched Project Crypto, a joint framework that coordinates federal oversight of onchain trading, custody, and settlement.
- The program incorporates a shared crypto-asset taxonomy and common criteria to distinguish securities from commodities.
- The agencies will sign a memorandum of understanding covering data sharing, joint supervision, and guidance on tokenized collateral, leveraged crypto trading, and prediction markets.
The SEC and the CFTC formalized Project Crypto, a joint initiative designed to coordinate federal oversight of crypto-asset markets in the United States. The announcement was made on January 29, 2026, in Washington during a joint event between both agencies and was backed by a legal document released the following day.
Project Crypto began in 2025 as an internal SEC program aimed at updating its framework for modern trading systems. From now on, it will operate as a shared structure covering onchain trading, clearing, settlement, custody, and risk management under a coordinated approach between the two federal regulators.
The SEC and the CFTC Seek to Reduce Regulatory Overlaps
SEC Chairman Paul S. Atkins and CFTC Chairman Michael S. Selig confirmed that the project aims to reduce regulatory overlaps and prepare the agencies to coherently implement a future bipartisan market-structure law currently under discussion in Congress. Both agencies stated that legislation alone does not resolve the existing regulatory fragmentation.
During his remarks, Atkins noted that the SEC made progress over the past year with internal definitions and operational guidance on digital assets. These include clarifications on the status of memecoins, stablecoins, mining and staking activities, as well as more precise guidance on the responsibilities of broker-dealers, transfer agents, and qualified custodians. Registered advisers and regulated funds were also authorized to hold crypto assets at certain state-licensed financial institutions.
Greater Precision in Distinguishing Securities and Commodities
Under the new framework, Project Crypto envisions the development of a common crypto-asset taxonomy and shared criteria to determine which instruments fall under the securities category and which qualify as commodities. The project also targets a reduction in duplicate registrations for firms that currently must comply with parallel requirements at both agencies.
Officials announced plans to sign a memorandum of understanding establishing data sharing, joint supervision mechanisms, coordination in regulatory processes, and regular meetings between working teams. Initial priorities include guidance on tokenized collateral, clearer rules for leveraged crypto trading, potential safe-harbor frameworks for software developers, and a review of the regulatory treatment of prediction markets and event contracts.
Project Crypto was forged under the current administration of Donald Trump, which implemented changes in the leadership of financial regulators and promotes the return of crypto activity to the US market. In the meantime, the SEC and the CFTC indicated that they could issue guidance and operational adjustments in the near term, even before Congress passes a new law.
Heading Toward Excessive Control
While flexibility measures have been adopted and platforms such as Ripple can operate with greater freedom, an overload of new controls can only lead down a path toward the suppression of financial freedom. The crypto industry calls for effective regulation, clarity, and protection, not for control mechanisms that undermine users’ ability to exercise full control over their capital. It is important to understand where we are heading and where we come from in order to prevent individual states from expanding their surveillance powers and ultimately harming users who seek to manage their wealth freely
