U.S. regulators are actively working to dispel rumors of a potential merger between the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC), addressing what they see as "FUD" (fear, uncertainty, and doubt) within the crypto market.
SEC Chair Paul Atkins recently addressed the merger speculation, stating that while the two agencies are working closely together, a merger is not on the table. Speaking on Mornings with Maria, Atkins emphasized that he is currently very busy and that the SEC and CFTC are effectively collaborating on digital asset regulation without combining their functions. He expressed that "compartmentalization" is the ideal approach, allowing each agency to maintain its distinct responsibilities while still achieving common goals through cooperation.
Echoing this sentiment, the SEC and CFTC are moving forward with collaborative initiatives. A joint roundtable is scheduled for September 29, 2025, where regulators and industry leaders will discuss regulatory harmonization priorities in the evolving market. The roundtable aims to explore how the SEC and CFTC can improve "economic values, choices for market participants, and reduce costs for investors". The agencies have also published four joint statements since the beginning of Donald Trump's return to the White House in January, including one on spot crypto asset products.
These efforts to clarify the relationship between the SEC and CFTC come amid ongoing discussions about the regulatory landscape for digital assets. Atkins has called on lawmakers to push forward with efforts to pass a crypto market structure bill, confirming that the SEC is providing technical support to both the House and Senate. The White House has set a target deadline of 2025 for the passage of this bill, which aims to establish a comprehensive regulatory framework for the crypto market.
Some industry observers believe that closer cooperation between the SEC and CFTC is essential for providing regulatory clarity, particularly in the digital asset space. Stephen Strombelline, managing director at JS Held, noted that while rumors of an SEC-CFTC merger have circulated for years, it is unlikely to happen. He stated that futures have become too important as a financial tool, but there is a commitment to closer cooperation between the two agencies.
Caroline Pham, acting chairman of the CFTC, has also been proactive in addressing concerns and providing clarity on the agency's enforcement actions. Since becoming acting chair, Pham has highlighted the CFTC's efforts to protect market participants and ensure market integrity.
The SEC and CFTC were established to regulate distinct financial markets but often face jurisdictional questions regarding assets that do not fit neatly into the securities or commodities categories. Despite past failures to harmonize or merge the agencies, the current administration's focus on government efficiency and clear rules for crypto players presents an opportunity for regulatory alignment.
