U.S. Securities and Exchange Commission (SEC) Chair Paul Atkins has announced a new phase of cooperation between the SEC and the Commodity Futures Trading Commission (CFTC) — signaling the end of what he called the “era of regulatory fragmentation.”
According to Atkins, the initiative aims to harmonize oversight rather than merge the two agencies, which would require Congressional and presidential approval. The focus is on improving coordination, reducing overlapping rules, and strengthening the United States’ position as a global financial leader.
“The era of regulatory fragmentation is coming to an end. It’s time for harmonized, innovation-friendly supervision,” said Atkins.
He explained that decades of parallel work between the SEC and CFTC had resulted in duplicated requirements, regulatory delays, and lost opportunities for innovation. The goal of the new approach is to simplify compliance, accelerate innovation, and make U.S. capital markets more transparent and business-friendly.
Atkins also highlighted that the CFTC, established in 1974 to oversee commodity futures, was designed for a much simpler market environment. In today’s complex ecosystem, the traditional distinction between “securities” and “derivatives” has blurred — making unified frameworks essential to prevent jurisdictional conflicts.
This joint regulatory effort is expected to create a clearer structure for digital assets and other emerging financial instruments, aligning with broader U.S. goals to modernize financial oversight.
Earlier, Atkins stated that the SEC would no longer pursue enforcement-first policies against firms involved in minor or technical rule violations — a signal of his commitment to a more cooperative and innovation-driven regulatory approach.
