SEC and CFTC Launch Joint Project Crypto for Unified Digital Asset Regulation, January 29, 2026

On 29 January 2026, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) jointly announced Project Crypto at the CFTC's Washington D.C. headquarters. The initiative transforms what had been an internal SEC initiative into a bilateral inter-agency program. Project Crypto is in the policy and pre-rulemaking stage: no final rules have been promulgated, but agency heads have directed staff to begin drafting specific rulemakings and guidance. SEC Chairman Paul S. Atkins and CFTC Chairman Michael S. Selig made the announcement jointly, marking the first significant inter-agency coordination on digital assets under the current administration.

The authority for each agency's participation rests on existing statutory grants: the SEC operates under the Securities Exchange Act of 1934 and the Securities Act of 1933, while the CFTC derives its jurisdiction from the Commodity Exchange Act (CEA), 7 U.S.C. § 1 et seq. Chairman Selig, in his remarks at the joint event, stated that "most crypto assets trading today are not securities" — aligning with Chairman Atkins' previously stated taxonomy, which would treat digital commodities, digital collectibles, and digital tools as outside the definition of "security" even when sold as part of an investment contract. Staff of both agencies have been directed to work jointly toward codifying a shared crypto-asset taxonomy as an interim measure pending congressional market structure legislation.

For crypto exchanges, trading platforms, DeFi protocol operators, custodians, and software developers, Project Crypto's immediate directed priorities carry near-term compliance significance. CFTC staff has been directed to draft rules on: (1) enabling additional forms of eligible tokenized collateral; (2) onshoring perpetual derivative products; (3) establishing safe-harbor protections for software developers and non-custodial wallet providers; (4) facilitating multi-product "Super-Apps"; (5) clarifying rules for leveraged, margined, or financed retail crypto trading; and (6) developing a new designated contract market (DCM) registration category for retail leveraged crypto trading. The agencies will also formalize coordination through a memorandum of understanding establishing joint data-sharing, coordinated surveillance, weekly leadership calls, and harmonized rulemaking processes.

Project Crypto does not resolve the underlying statutory ambiguity between SEC and CFTC jurisdiction, which can only be definitively addressed by Congress. Comprehensive market structure legislation — often referred to as the "digital asset market structure bill" — remains pending. The GENIUS Act, mentioned in Chairman Selig's remarks as already having become law, addresses stablecoins separately. Project Crypto's taxonomy and guidance will operate as interim administrative positions only, subject to modification by future rulemaking, judicial challenge, or legislative action. Market participants should treat current agency statements as directional signals rather than binding rules and continue to monitor formal rulemaking dockets at both the SEC and CFTC.

Source: (1) Paul S. Atkins, SEC Chairman, "Opening Remarks at Joint SEC-CFTC Harmonization Event – Project Crypto," Jan. 29, 2026, https://www.sec.gov/newsroom/speeches-statements/atkins-remarks-joint-sec-cftc-harmonization-event-project-crypto-012926 (confirmed 4 March 2026). (2) Michael S. Selig, CFTC Chairman, "The Next Phase of Project Crypto: Unleashing Innovation for the New Frontier of Finance," Jan. 29, 2026, https://www.cftc.gov/PressRoom/SpeechesTestimony/opaselig1 (confirmed 4 March 2026).

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