Paul Atkins Envisions SEC-CFTC ‘Super App’ Model After Two Sides ‘Bury The Hatchet’ On Crypto

The SEC and CFTC signed a memorandum of understanding aimed at coordinating regulation of the cryptocurrency market.

• In an interview with Chamath Palihapitiya, CFTC Chair Michael Selig said it was time for the two agencies to “bury the hatchet.”
• SEC Chair Paul Atkins said his goal is for the CFTC and SEC to function like a “super app,” where the lines are blurred but action is coordinated.
• Atkins said the two agencies thus far operated like “two fortresses with no man's land in between” where the “bodies of would-be products” lay dead.

Commodity Futures Trading Commission (CFTC) Chair Michael Selig said it was time for the two sides to “bury the hatchet” after signing a memorandum of understanding (MOU)  with the U.S. Securities and Exchange Commission (SEC) after years of debate over who should regulate the cryptocurrency market.

"The era of turf wars, duplicative registrations, & differing regulations between SEC & CFTC is over,” SEC Chair Paul Atkins wrote in a post on X. “It’s important that we bury the hatchet,” added CFTC Chair Michael Selig during an interview with venture capitalist Chamath Palihapitiya.

Atkins said he hopes to build toward a “super app” approach, where lines may still be blurred between the SEC and CFTC, but the approach is coordinated. According to him, the two agencies were akin to “two fortresses with no man's land in between” where the “bodies of would-be products” lay dead.

End Of Crypto 'Turf Wars' Between SEC, CFTC 

Even before the Gary Gensler era of cryptocurrencies, the largest pain point between the two agencies has been whether a crypto token is a security, as per the SEC’s stance, or a commodity, according to the CFTC. The two agencies had different rulebooks for the same asset class.

Big banks, large investors, and others didn’t participate in the cryptocurrency market due to the regulatory uncertainty. The MOU between the SEC and CFTC ends the all-out war, following the passage of the GENIUS Act last year and the CLARITY Act expected to pass this year.

What Does The SEC, CFTC MOU Actually Mean?

The MOU between the SEC and CFTC essentially outlined how the two sides are going to cooperate going forward. The primary goal is to build a dedicated framework for crypto assets. This includes regular meetings to discuss emerging regulatory issues before they become problems, as well as real-time data sharing on specific incidents, events, and market activity.

When it comes to oversight, they will coordinate on cross-market surveillance and joint examinations. Staff in both agencies will be trained on the other’s jurisdiction. Moreover, to avoid conflicting outcomes for the same asset, enforcement will also be coordinated.

“By aligning regulatory definitions, coordinating oversight, & facilitating data sharing, Chairman Michael Selig & I will ensure we deliver the clarity market participants deserve,” Atkins said.

The overall cryptocurrency market edged up nearly 1% over the last 24 hours, stable at around around $2.4 trillion, while Bitcoin (BTC) struggled to hold the $70,000 mark. Retail sentiment on Stocktwits around the apex cryptocurrency remained in ‘neutral’ territory over the past day. The equities market, meanwhile, edged lower in pre-market trade on Thursday amid escalating tensions between the U.S. and Iran.

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