The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have announced a joint event on the future of crypto oversight amid the Trump administration’s push to welcome the sector.

SEC-CFTC Push Joint Crypto Oversight

On Thursday, SEC Chairman Paul Atking and CFTC Chairman Michael Selig announced they will hold an event next week to discuss regulatory harmonization between the two sister agencies.

According to the announcement, the pro-industry chairmen will outline the efforts to work together and cooperate to “deliver on President Trump’s promise to make the United States the crypto capital of the world.”

The event will be hosted on January 27 at the CFTC headquarters and moderated by crypto journalist Eleanor Terret. Additionally, it will be open to the public and livestreamed on both agencies’ websites.

“For too long, market participants have been forced to navigate regulatory boundaries that are unclear in application and misaligned in design, based solely on legacy jurisdictional silos,” said SEC Chair Atkins and CFTC Chair Selig in a joint statement.

“This event will build on our broader harmonization efforts to ensure that innovation takes root on American soil, under American law, and in service of American investors, consumers, and economic leadership,” they added.

Last year, the SEC and CFTC began discussing their options for effectively collaborating on crypto regulations, as a clear framework for digital assets became a top priority for the agencies

As reported by Bitcoinist, the agencies explored reinstating the CFTC-SEC joint advisory committee to develop recommendations on ongoing issues, including efforts in regulatory coordination.

During a September joint roundtable between the two agencies, Atking declared that the era of regulatory fragmentation was ending and the age of harmonized, innovation-friendly crypto oversight was here:

 We are at a crossroads. If we follow the path of our predecessors, America risks ceding leadership in the next chapter of financial history. (…) This ends now (…) our two agencies must work in lockstep to transform dual regulation from a source of confusion into a source of strength. Together, we can offer the best of both worlds: the investor protections that have defined U.S. markets, combined with the innovation-friendly approach that will keep us at the frontier of financial technology throughout the 21st century.

The SEC’s Director of the Division of Trading and Markets, Jamie Selway, highlighted the SEC’s efforts to “further harmonize its rules with our sister regulator, the CFTC. In a January 22 speech, He affirmed that the Division will work shoulder-to-shoulder with the CFTC staff to ensure the US’s continued leadership in financial markets, following Atkins’ September directions.

Congress Regulatory Efforts Stall

The SEC and CFTC’s efforts to regulate the crypto market come as the US Congress struggles to establish a framework to oversee the sector. The Senate Banking Committee’s version of the market structure bill, which focuses on the SEC’s oversight, was delayed after multiple market participants criticized the bill’s draft.

Coinbase CEO Brian Armstrong shared his disappointment with the crypto legislation, withdrawing the company’s support last week. “This version would be materially worse than the current status quo. We’d rather have no bill than a bad bill,” he affirmed.

The Senate Agriculture Committee published its version of the CLARITY Act on Thursday, which mainly addresses the CFTC’s role and regulations, scheduling its markup session for January 27.

Eleanor Terret shared that the industry’s reaction has been mostly positive, “with stakeholders noting the bill’s close similarities to the House Agriculture Committee’s version of the Clarity Act.”

However, recent reports have warned that the Banking Committee’s crypto talks may not resume until later February or early March, as focus shifts to advancing affordable housing plans linked to President Trump’s priorities.

In a critical week for the cryptocurrency industry, following the delayed markup of the Crypto Market Structure bill (CLARITY Act), House Democrats are calling on the Securities and Exchange Commission (SEC) chair, Paul Atkins, to reinstate enforcement actions against crypto firms. 

The letter, dated January 15, was signed by Representatives Maxine Waters, Sean Casten, and Brad Sherman, who expressed concerns regarding the SEC’s recent retreat to investigate and prosecute alleged violations related to “digital asset securities.”

House Democrats’ Allegations

The representatives highlighted that since January 2025, the SEC has dismissed or closed more than a dozen cases involving crypto-related activities, including litigations against major players like Binance, Coinbase, and Kraken. Just this week, the SEC also closed its case against the Zcash Foundation.

In their letter, the lawmakers alleged that given the industry’s “troubling history of harming investors,” the SEC’s decision to pull back raises serious questions about its priorities and effectiveness. They warned that this shift puts both investors and the broader US economy at considerable risk.

Moreover, the representatives highlighted unprecedented lobbying and monetary contributions to political figures, including President Trump and his associates, from the digital asset sector. They pointed out that this could have influenced the SEC’s decision to abandon a majority of its crypto enforcement actions. 

Alleged Conflicts Of Interest Between Trump And Crypto 

These concerns follows months of allegations from the Democratic Party suggesting conflicts of interest between the Trump administration and the crypto industry, particularly highlighted by last year’s pardon for former Binance CEO Changpeng Zhao (CZ) and connections to the Trump-affiliated World Liberty Financial (WLFI).

According to the lawmakers, the SEC’s choice to walk away from these enforcement cases has raised suspicions of a possible pay-to-play dynamic. They argued that allowing violators of securities laws to escape without repercussions contradicts the SEC’s primary responsibility. 

Furthermore, the Representatives claim that recent statements by Chair Atkins, who said that ‘most crypto tokens are not securities’, have caused confusion.

The Democrats further pointed out that this lack of enforcement against digital assets leaves investors “vulnerable” and allegedly fails to protect them from potential violations in the market.

Featured image from DALL-E, chart from TradingView.com