Project Crypto: SEC and CFTC Unite to Regulate Cryptocurrencies in the US
📋 En bref (TL;DR)
- SEC and CFTC launch “Project Crypto”, a joint initiative to harmonize crypto regulation in the US
- The two agencies will sign a Memorandum of Understanding (MOU) formalizing their cooperation
- Goal: create a common taxonomy clearly defining what is a security vs a commodity
- The new CFTC Chairman, Michael Selig, aligns with the SEC’s vision
- The Senate has advanced a bill giving more power to the CFTC over crypto
After years of jurisdictional battle, the SEC and CFTC are burying the hatchet. The two American regulators announced a historic collaboration called “Project Crypto” to create a unified regulatory framework. A revolution for the American crypto industry.
Project Crypto: The End of the SEC vs CFTC War
On Thursday, January 29th, the chairs of the SEC (Securities and Exchange Commission) and CFTC (Commodity Futures Trading Commission) held a historic joint event. Their announcement: the two agencies will co-pilot “Project Crypto”, an initiative aimed at modernizing the supervision of digital assets.
“We are witnessing the birth of the foundations of modern markets,” declared Michael Selig, new CFTC Chairman. “The CFTC has the opportunity to build on its historic role as a forward-thinking regulator.”
This collaboration ends years of quarrels between the two agencies over the question: “Are cryptocurrencies securities or commodities?” This ambiguity has long paralyzed the industry and created major legal uncertainty.
A Memorandum of Understanding to Formalize Peace
According to the Wall Street Journal, the two agencies are preparing a Memorandum of Understanding (MOU) — a formal cooperation agreement. This document will define coordination mechanisms, information sharing, and the distribution of responsibilities between the securities regulator and the commodities regulator.
SEC Chair Paul Atkins emphasized the urgency of action: “Fragmented regulation in an interconnected market creates confusion instead of protecting investors. We will deploy all tools at our disposal to reduce friction and harmonize standards.”
A Common Taxonomy: Security or Commodity?
The heart of Project Crypto will be creating a shared taxonomy of digital assets. The goal: clearly define which tokens fall under SEC jurisdiction (securities) and which under CFTC (commodities).
Michael Selig confirmed that the CFTC will not develop an independent crypto framework. Instead, the agency will align its work with the SEC’s within Project Crypto. He ordered his teams to collaborate on joint regulation.
Specifically, this taxonomy should clarify that “digital commodities, collectibles, and tools are not securities.” Bitcoin and Ethereum, already considered commodities, would remain under CFTC jurisdiction.
The Senate Advances Crypto Legislation
Alongside regulatory action, Congress is making progress. Thursday, the Senate Agriculture Committee passed the Digital Commodity Intermediaries Act by a 12-11 vote along party lines (Republicans for, Democrats against).
This is a historic first: never before had a crypto market structure bill crossed this hurdle in the Senate. This text would give the CFTC clear regulatory authority over “digital commodities.”
Senator John Boozman, committee chair, called the vote “a critical step toward clear rules for digital asset markets.” However, there’s still work to do: the Senate Banking Committee must approve its version before the two texts can merge.
Democratic Concerns
The vote wasn’t unanimous. Democrats expressed concerns, notably Senator Cory Booker who denounced conflicts of interest related to President Trump’s crypto activities and his family.
“The President of the United States and his family have made billions of dollars in this industry,” Booker declared. “It’s ridiculous to create a regulatory framework without ethics that would prevent this type of corruption.” Democrats proposed amendments to prohibit elected officials from participating in the crypto market, but they were rejected.
Michael Selig’s Agenda at the CFTC
The new CFTC Chairman detailed several priorities during his first public statements:
- Tokenized collateral: allowing new types of tokenized assets to be used as collateral
- Perpetual derivatives: bringing “perps” trading back to the US from offshore
- Safe harbors for developers: clear legal protections for software creators
- New license category: registration adapted to leveraged crypto trading for retail investors
- Prediction markets: removing restrictions on political and sports contracts
What This Changes for Investors
For crypto investors, this harmonization is excellent news on several fronts:
- End of legal uncertainty: projects will finally know which regulator they’re dealing with
- More innovation in the US: crypto companies won’t need to relocate to avoid regulatory ambiguity
- Consumer protections: clear rules on conflicts of interest and disclosure
- Access to new products: perpetual derivatives, prediction markets, tokenized collateral
Paul Atkins did remind that legislative clarity from Congress remains “the best long-term outcome.” In the meantime, regulators can act within their existing powers.
📚 Glossary
- SEC : Securities and Exchange Commission, the regulator of financial markets and securities in the US.
- CFTC : Commodity Futures Trading Commission, the regulator of commodity and derivatives markets.
- Security : financial instrument representing ownership or debt (stocks, bonds, certain tokens).
- Commodity : raw material or fungible asset (gold, oil, Bitcoin under current classification).
- MOU : Memorandum of Understanding, formal cooperation agreement between organizations.
- Taxonomy : classification system defining asset categories and their regulatory regimes.
❓ Frequently Asked Questions About Project Crypto
What is Project Crypto?
Project Crypto is a joint initiative by the SEC and CFTC to harmonize cryptocurrency regulation in the United States. The goal is to create clear rules defining which digital assets are securities (under SEC jurisdiction) and which are commodities (under CFTC jurisdiction), ending years of legal uncertainty.
Is Bitcoin a security or a commodity?
Bitcoin is classified as a commodity, placing it under CFTC rather than SEC jurisdiction. Ethereum has the same classification. This distinction matters because the commodities regulatory regime is generally less restrictive than the securities regime.
When will the new crypto regulation take effect?
The timeline remains uncertain. The Memorandum of Understanding between SEC and CFTC should be signed in the coming weeks. However, comprehensive Congressional legislation will take longer — the bill must still pass several committees and be voted on in full session. Regulators can act more quickly through their existing powers.
What impact for European investors?
US regulation influences the entire global crypto market. Clarification in the US could encourage more institutions to invest, supporting prices. Additionally, authorized innovations (perpetual derivatives, prediction markets) could eventually become available through platforms accessible in Europe. In Europe, the MiCA framework applies.
Who is Michael Selig, the new CFTC Chairman?
Michael Selig is the new CFTC Chairman, nominated by President Trump and confirmed by the Senate in December 2025. From his first statements, he showed an approach favorable to crypto innovation, promising to work closely with the SEC rather than maintaining the historic rivalry between the two agencies.
📰 Sources
This article is based on the following sources:
- CoinDesk – SEC, CFTC chiefs push united front
- The Crypto Basic – SEC and CFTC collaborate on Project Crypto
- CNBC – Senate panel passes crypto CFTC regulation bill
- Wall Street Journal – Trump regulators ready crypto rules
Comment citer cet article : Fibo Crypto. (2026). Project Crypto: SEC and CFTC Unite to Regulate Cryptocurrencies in the US. Consulté le 4 February 2026 sur https://fibo-crypto.fr/en/blog/project-crypto-sec-cftc-unified-regulation-2026
