Two major regulatory agencies jointly take action for the first time, US crypto policy changes

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are teaming up. On January 23, SEC Chairman Paul Atkins announced that he will attend a joint public event with CFTC Chairman Mike Selig next week to discuss coordination between the two major regulatory agencies in the crypto space. The event will be held at the CFTC headquarters, open to the public, and streamed online simultaneously. This move marks a new phase in U.S. crypto regulation, shifting from confrontation to cooperation.

Political Signals Behind Regulatory Coordination

From “Suppression” to “Friendliness”

According to the latest news, both agencies will jointly promote the implementation of President Trump’s promise to make the U.S. a global crypto hub. This statement may seem simple, but it reflects a fundamental shift in U.S. crypto policy.

During former SEC Chair Gensler’s tenure, a strict regulatory stance was taken against the crypto industry, with investigations and lawsuits against companies like Coinbase and Ripple. Now, a year after Gensler’s departure, the SEC has withdrawn those investigations and reorganized under a Republican-led leadership. This change is not accidental but a reflection of the new government’s crypto policy.

Internal preparations are underway

CFTC’s actions also confirm this trend. On January 21, CFTC Chairman Michael Selig appointed seasoned crypto lawyer Michael Passalacqua as Senior Advisor. Passalacqua has extensive experience in cryptocurrency and blockchain litigation and previously pushed the U.S. Securities and Exchange Commission to issue no-action letters, allowing state-chartered trust companies to serve as crypto custodians.

What does this appointment signify? The CFTC is building talent reserves for deeper involvement in crypto regulation. When the chairs of both agencies decide to speak out publicly in unison, and their subordinate agencies are already staffing crypto experts, it indicates a consensus forming within U.S. regulators.

What Could This Coordination Change

Clarifying Regulatory Boundaries

For a long time, SEC and CFTC have had blurred authority over crypto regulation. What is Bitcoin or Ethereum? Securities or commodities? This question has troubled the industry for years.

This public joint discussion suggests that the two agencies may sit down to clarify their respective regulatory boundaries. Once the authority division is clear, companies will know whom to report to and what rules to follow, which is crucial for industry compliance and development.

Market Confidence

The successful IPO of BitGo (which rose 20% on its first day on January 23) coincides with this timing—no coincidence. Institutional investors are willing to invest in crypto infrastructure companies because they see regulatory environment improvements. When SEC and CFTC publicly coordinate crypto policies, the market interprets it as a positive signal.

Future Directions to Watch

According to the latest news, Congress is also pushing the “Digital Asset Market Clarity Act.” If this coordination between SEC and CFTC can produce a unified recommendation, it could influence legislative efforts in Congress. In other words, this event might not only be about regulatory coordination but also a turning point for advancing crypto legislation.

Summary

This joint action by SEC and CFTC marks a new stage in U.S. crypto regulation. From Gensler’s era of confrontation to now cooperation, this shift reflects changes in the political environment and market demand. When the two agencies start discussing how to promote crypto development instead of how to crack down on it, the industry’s outlook will change significantly. This is a positive signal for institutional investors and crypto projects alike. The specific content of next week’s public event warrants close attention.