SEC’s Atkins and CFTC’s Selig Forge Unprecedented Alliance to End Crypto Regulatory Chaos
Two top U.S. financial watchdogs just declared a truce in the crypto wars—and the entire digital asset market is bracing for impact.
The Unlikely Partnership
For years, the Securities and Exchange Commission and the Commodity Futures Trading Commission operated in silos, creating a regulatory no-man's-land where crypto projects either thrived in ambiguity or got crushed by enforcement. That era ends now. Commissioners Atkins and Selig are merging their playbooks, signaling a coordinated federal front that cuts through the jurisdictional fog.
What This Means for Your Portfolio
Expect clarity—finally. The joint framework will delineate which tokens are securities, which are commodities, and which novel assets fall into new, bespoke categories. This kills the 'regulation by enforcement' strategy that kept institutional money on the sidelines. Major exchanges and DeFi protocols now face a unified rulebook, not a coin-flip between two conflicting agencies.
The New Rules of the Game
The alliance bypasses congressional gridlock, using existing authorities to craft interim guidance. It's a regulatory shortcut that could stabilize markets faster than any legislation. Projects currently dancing between SEC and CFTC lines must pick a lane—compliance gets simpler, but loopholes vanish overnight.
A cynical take? Wall Street veterans have seen this movie before: regulators step in to 'protect investors' just as the little guy starts figuring out the game. Some harmony looks a lot like control dressed up as progress.
One thing's certain—the regulatory chaos that defined crypto's wild west phase is over. The sheriff and the marshal just agreed to share a badge.
Regulators Build on September’s Historic Turf War Resolution
The upcoming event continues momentum from a September 29 roundtable where both agencies publicly declared an end to their jurisdictional conflicts.
CFTC Commissioner Caroline Pham told attendees at that gathering that “the turf war is over,” while Atkins described it as “a turning point for American financial markets.“
That roundtable brought together executives from major platforms, including Kraken, Polymarket, Kalshi, Nasdaq, CME Group, and Robinhood, to discuss coordinated oversight of digital assets.
Atkins emphasized at the time that “for years, the SEC and CFTC have worked in silos, sometimes at odds,” but that era had ended.
The January 27 event will feature opening remarks from both chairmen, followed by a fireside chat moderated by Eleanor Terrett, co-founder of Crypto in America.
Doors open at 9:30 a.m., and the session will be broadcast live on the SEC’s website.
Agencies Accelerate Crypto Policy After Leadership Changes
Both regulators have moved aggressively on digital asset policy since new leadership took over in 2025.
Atkins assumed the SEC chairmanship in April after Gary Gensler’s departure, immediately shifting away from enforcement-based regulation toward clearer frameworks and guidance.
As reported by Cryptonews today, under Atkins, the SEC opened just 13 crypto-related enforcement actions in 2025 compared to 33 in 2024, a 60% decline and the lowest level since 2017, according to Cornerstone Research.
Eight of those cases involved fraud allegations, indicating a narrower focus on investor harm rather than broad registration theories.
The agency also dismissed seven ongoing actions and reduced total monetary penalties to $142 million, less than 3% of 2024 levels.
The SEC opened just 13 crypto enforcement cases in 2025, down 60% from 2024, with most new actions under Chair Paul Atkins focused on fraud.#SEC #CryptoEnforcement https://t.co/YI5S1uVisH
Selig took the CFTC helm on December 22 after Senate confirmation, replacing acting chair Caroline Pham.
He immediately launched the Future-Proof initiative, a comprehensive review aimed at updating decades-old regulations for blockchain, AI-driven trading, and prediction markets.
“We are at a unique moment as a wide range of novel technologies, products, and platforms are emerging,” Selig said after his swearing-in.
“Under my leadership, the CFTC will conquer these great frontiers and ensure that the innovations of tomorrow are Made in America.“
Joint Efforts Face Congressional Pressure on Market Structure Bills
The harmonization push comes as Congress advances competing digital asset legislation.
The Senate Agriculture Committee released updated text for its Digital Commodity Intermediaries Act and scheduled a January 27 markup at 3 p.m., just hours after the Atkins-Selig event concludes.
Chairman John Boozman acknowledged that “differences remain on fundamental policy issues” with Democrats, who failed to support the bill despite extended negotiations.
The markup could proceed on party lines, unlike the House Agriculture Committee’s bipartisan 47-6 vote on similar legislation.
According to Eleanor Terrett, Senator Cory Booker’s team told Politico that he will continue working with Boozman to pass and sign the legislation, though no Democrats have publicly supported the text.
NEW: Where do we stand on crypto market structure legislation right now? The @SenateAg Committee released its latest legislative text last night, with Chairman @JohnBoozman (R-AR) acknowledging that Republicans and Democrats failed to reach a deal despite an extra two weeks of…
Meanwhile, the Senate Banking Committee delayed its markup of the CLARITY Act until late February or March to focus on housing legislation.
Industry divisions over stablecoin yield provisions have complicated negotiations, with Coinbase CEO Brian Armstrong calling certain restrictions “” before withdrawing support.
However, President TRUMP confirmed at Davos 2026 that he expects to sign crypto market structure legislation “” stating his administration is working to ensure “America remains the crypto capital of the world.”
For now, the joint regulatory event indicates that both agencies are preparing to implement whatever framework Congress ultimately delivers.
