SEC and CFTC Join Forces in Project Crypto Revamp for Better U.S. Digital Asset Regulation

The U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have reignited their collaborative efforts under Project Crypto to enhance regulatory clarity and oversight in the digital asset markets. As of January 29, 2026, SEC Chair Paul S. Atkins and CFTC Chair Michael S. Selig have put forth a renewed call for legislative support from Congress, urging the swift passage of the CLARITY Act and other crucial crypto market structure bills aimed at establishing robust yet innovation-friendly regulations. This inter-agency venture seeks to create a cohesive regulatory environment, reducing redundancies and aligning the responsibilities of the SEC and CFTC amidst the shift of traditional markets toward blockchain-enabled platforms. By advocating for a 'minimum-effective-dose' approach, the agencies intend to address material risks commensurate with statutory authority, while also avoiding undue burdens on compliant market players. With the rise of on-chain trading and settlement, there is an increasing need for modernized oversight that can adapt to the intricacies of integrated market functions. The CLARITY Act, in particular, is seen as an urgent and pivotal piece of legislation that would not only safeguard investors but would also enhance the United States' position in the global competitive landscape of digital finance. Regulatory certainty and harmonization are key priorities as the race for digital asset dominance continues to intensify worldwide.