SEC and CFTC Launch “Project Crypto” to Unite US Regulation

Core Viewpoint - The SEC and CFTC are collaborating to create a unified regulatory framework for digital-asset markets in the United States, aiming to reduce overlapping rules and enhance clarity as Congress approaches a bipartisan market-structure bill [1][2]. Group 1: Project Crypto Overview - Project Crypto has evolved from an SEC initiative in 2025 to a joint effort between the SEC and CFTC to modernize the regulatory approach to digital-asset trading [2][3]. - The initiative is described as one of the most ambitious collaborations between the two agencies in a generation, focusing on establishing a "minimum effective dose" of regulation [3]. Group 2: Regulatory Framework and Coordination - The new framework will include a shared crypto-asset taxonomy, clearer distinctions between securities and commodities, and the elimination of duplicate registrations for firms regulated by both agencies [4]. - The project aims to foster "coordination, coherence, and a unified approach" to federal oversight of crypto asset markets, moving beyond historical jurisdictional disputes [4]. Group 3: Implementation and Future Guidance - A formal memorandum of understanding will be established to ensure data-sharing, joint surveillance, weekly leadership calls, and coordinated rulemaking, making the regulatory system resilient to future leadership changes [5]. - Initial priorities include safe-harbor provisions for software developers, guidance on tokenized collateral, clearer rules for leveraged crypto trading, and a review of prediction markets and event contracts [6]. Group 4: Legislative Context - Regulators are advocating for the passage of the CLARITY Act and related legislation while indicating that they can still provide near-term guidance under existing laws [7].