SEC and CFTC Forge Unified Front with 'Project Crypto' to Streamline Digital Asset Oversight
WASHINGTON—In a significant step toward regulatory clarity for the volatile digital asset sector, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have officially unified their separate efforts under a single banner: "Project Crypto." The initiative, announced this week, is designed to create a cohesive rulebook for policing crypto markets, ending years of overlapping and sometimes conflicting oversight that has plagued the industry.
The chairs of both agencies, Paul S. Atkins of the SEC and Michael S. Selig of the CFTC, confirmed the joint framework in Washington. The plan, first outlined in speeches on January 29, 2026, and detailed in a legal brief the following day, represents a deliberate shift from parallel rulemaking to a shared regulatory architecture.
"This is one of the most ambitious initiatives between our two agencies in a generation," stated Chairman Atkins. "Our focus is on administering a 'minimum effective dose' of regulation—crafting one clear set of rules, not two." The expanded Project Crypto will now serve as a shared framework covering on-chain trading, clearing, settlement, and custody across both regulators.
The move comes as bipartisan momentum builds in Congress for comprehensive market-structure legislation, such as the proposed CLARITY Act. Regulators have acknowledged that the current fragmented system—where a single firm may face dual registration and conflicting guidance from the SEC and CFTC—has driven innovation offshore and created uncertainty for investors.
Under the new arrangement, the agencies will develop a common taxonomy for crypto assets, draw clearer jurisdictional lines between securities and commodities, and eliminate duplicative registration requirements. A formal memorandum of understanding is forthcoming, which will institutionalize data-sharing, joint surveillance, and coordinated rulemaking.
"Project Crypto aims to bring coordination, coherence, and a unified approach to federal oversight," said CFTC Chair Selig, calling it a "rare opportunity to move past long-running jurisdictional debates."
Initial priorities for the project include crafting safe-harbor provisions for software developers, issuing new guidance on tokenized collateral, clarifying rules for leveraged crypto trading, and reviewing the treatment of prediction markets. The initiative is rolling out under the Trump administration, which has prioritized bringing crypto activity back within U.S. regulatory perimeters.
The announcement arrives amid turbulent market conditions. On January 29, spot Bitcoin ETFs witnessed approximately $818 million in outflows, contributing to nearly $1.8 billion in forced liquidations as Bitcoin's price tumbled below $85,000. Major funds from BlackRock and Fidelity Investments were among those seeing significant redemptions.
Industry analysts suggest the unified regulatory push is designed to dismantle "regulatory fragmentation" and enhance the competitiveness of U.S. markets as jurisdictions like the EU and UK advance their own crypto frameworks.
Voices from the Community
Eleanor Vance, Fintech Policy Analyst at The Brookings Institution: "This is a pragmatic and overdue development. Regulatory arbitrage has been the industry's worst-kept secret. A unified rulebook reduces compliance costs and signals maturity, which is essential for institutional adoption."
Marcus Thorne, CEO of Apex Blockchain Solutions: "Finally, a glimpse of sanity. The dual-regulator dance was stifling innovation. This framework, if implemented with industry consultation, could make the U.S. a leader again instead of driving projects to friendlier shores."
David Chen, Retail Investor and Crypto Blogger: "Are you kidding me? 'Project Crypto'? More like 'Project Kick the Can.' We've heard 'coordination' promises for years while they sue everyone in sight. This is just bureaucracy rebranding inaction. They'll regulate us into oblivion while the market bleeds."
Dr. Lena Rodriguez, Professor of Financial Law at Stanford: "The structural commitment via a memorandum is key. It attempts to create durability beyond the current administration and agency heads. The real test will be in the first enforcement actions under the new framework—will they truly be consistent?"