The US Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) are reportedly working toward a unified approach to digital asset regulation, according to a February 13 report by Fox Business journalist Eleanor Terret.
This effort includes reviving the long-dormant CFTC-SEC Joint Advisory Committee (JAC), which previously served as a bridge between the two regulatory bodies.
Reinstating the CFTC-SEC Joint Advisory Committee
The Joint Advisory Committee (JAC) was originally established in 2010 to address shared regulatory concerns. However, due to leadership transitions, it became inactive in 2014.
The committee was initially part of a broader regulatory harmonization effort outlined in a 2009 report, aimed at identifying emerging financial risks and improving oversight coordination.
According to the CFTC website:
“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.”
Push for Greater Regulatory Cooperation
Terret’s report indicates that acting CFTC Chair Caroline Pham has played a key role in advocating for the committee’s reinstatement. She views it as a crucial step toward greater collaboration on crypto regulation.
If relaunched, the JAC could help resolve jurisdictional uncertainties, particularly in cases where digital assets fall under both SEC and CFTC oversight.
Evolving Crypto Regulatory Efforts
This move aligns with the evolving regulatory landscape, as both the SEC and CFTC appear to be shifting toward a more structured policymaking approach rather than focusing solely on enforcement.
Recent actions from both agencies reflect a greater emphasis on developing clear regulatory frameworks:
- CFTC’s recent initiatives:
- Introduced a pilot program to explore tokenized non-cash collateral, such as stablecoins, within derivatives markets.
- Reorganized its Division of Enforcement to prioritize fraud prevention and investor protection.
- SEC’s new direction:
- Under Commissioner Mark Uyeda, the agency has invited industry players to discuss crypto regulations.
- Commissioner Hester Peirce now leads a newly formed Crypto Task Force, emphasizing the need for clear, predictable guidelines to eliminate legal uncertainty.
Building a Sustainable Crypto Regulatory Framework
These regulatory shifts signal an effort to move beyond enforcement-heavy tactics and toward a robust policy framework that ensures market integrity while fostering economic growth.
If successful, the revival of the JAC could strengthen inter-agency cooperation, helping to establish comprehensive and consistent regulations that provide clarity for digital asset investors, institutions, and businesses.
