CFTC and SEC Execute Memorandum of Understanding, Launch Joint Harmonization Initiative, March 2026

On March 11, 2026, the U.S. Commodity Futures Trading Commission and the U.S. Securities and Exchange Commission jointly announced the execution of a Memorandum of Understanding (MOU) establishing a framework for coordination and collaboration between the two agencies. The MOU is effective upon execution and immediately operative. Concurrent with the MOU, the agencies created a Joint Harmonization Initiative to advance coordinated oversight and regulatory clarity in areas of common regulatory interest.

The MOU is an inter-agency agreement executed pursuant to each agency's statutory authority — the CFTC under the Commodity Exchange Act and the SEC under the Securities Exchange Act of 1934 and the Securities Act of 1933. The document commits both agencies to: (1) clarifying product definitions through joint interpretations and rulemakings; (2) modernizing clearing, margin, and collateral frameworks; (3) reducing registration frictions for dually registered exchanges, trading venues, and intermediaries; (4) providing a fit-for-purpose regulatory approach for crypto assets and other emerging technologies; (5) streamlining regulatory reporting for trade data, funds, and intermediaries; and (6) coordinating cross-market examinations, economic analyses, risk monitoring, surveillance, and enforcement. The Joint Harmonization Initiative will be co-led by Meghan Tente (CFTC) and Robert Teply (SEC).

Entities that are dually registered with both the CFTC and SEC — including futures commission merchants that are also registered as broker-dealers, swap dealers with securities activities, and operators of trading venues subject to both agencies' jurisdiction — stand to benefit most directly from the MOU's commitment to reduce duplicative registrations and burdensome rules. Crypto asset issuers, exchanges, and DeFi protocol operators should pay close attention to the commitment to develop a "fit-for-purpose regulatory framework for crypto assets and other emerging technologies," as this is the area most likely to produce new joint interpretive guidance or coordinated rulemakings in the near term.

The MOU does not itself change any existing rule, regulation, or legal requirement. Its commitments are aspirational and operational, not binding in the statutory or regulatory sense. Actual changes will require separate notice-and-comment rulemakings, joint interpretations, or formal agency orders. The CFTC and SEC have invited public input on areas of harmonization through a written input form and meeting request mechanism. Market participants wishing to flag priority areas for harmonization — particularly in crypto asset regulation — should submit input promptly.

Source: Commodity Futures Trading Commission and Securities and Exchange Commission, Joint Press Release, "CFTC and SEC Announce Historic Memorandum of Understanding Between Agencies," CFTC Press Release No. 9192-26 (Mar. 11, 2026). Available at: https://www.cftc.gov/PressRoom/PressReleases/9192-26. Confirmed: March 16, 2026.

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