SEC and CFTC Sign Landmark Memorandum of Understanding on Regulatory Harmonization, March 2026

On March 11, 2026, the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) entered into a Memorandum of Understanding (MOU) establishing a coordinated regulatory relationship between the two agencies. The MOU is final and in effect as of that date. Both agencies simultaneously announced the creation of a Joint Harmonization Initiative to advance coordinated oversight and promote regulatory clarity in areas of common regulatory interest. The initiative will be co-led by Robert Teply of the SEC and Meghan Tente of the CFTC.

The MOU operates under the existing statutory authorities of the Securities Exchange Act of 1934, the Securities Act of 1933, and the Commodity Exchange Act (7 U.S.C. Section 1 et seq.). Its operative provisions address six areas: clarifying product definitions through joint interpretations and rulemakings; modernizing clearing, margin, and collateral rules; reducing regulatory frictions for dually registered exchanges, trading venues, and intermediaries; providing a fit-for-purpose regulatory approach for crypto assets and other emerging technologies; streamlining regulatory reporting for trade data, funds, and intermediaries; and coordinating cross-market examinations, economic analyses, risk monitoring, surveillance, and enforcement actions.

Dually registered broker-dealers and investment advisers, exchanges, clearing agencies, swap dealers, and commodity pool operators must now plan for joint applications and shared policy submissions under the new initiative. Crypto asset platforms that previously operated exclusively under either SEC or CFTC oversight should expect joint examination procedures and coordinated enforcement referrals. The MOU specifically targets the elimination of duplicative registration burdens and conflicting regulations that historically forced market participants to maintain separate compliance programs for functionally identical activities regulated by both agencies.

The MOU itself does not alter existing statutory authority or create new legally binding obligations; formal changes will require notice-and-comment rulemaking or congressional action. The Joint Harmonization Initiative will solicit public input through a written input form and meeting requests. The MOU follows the March 17, 2026 joint interpretive release on crypto asset classification (SEC Press Release 2026-30), which applied the new taxonomy developed under MOU coordination. Both agencies framed the MOU as a precursor to comprehensive bipartisan market structure legislation that Congress is actively developing.

Our firm advises financial intermediaries, crypto asset platforms, and market infrastructure operators on SEC and CFTC regulatory strategy, dual registration analysis, and compliance program design for cross-agency obligations. We maintain a dedicated partner network to assign the most relevant counsel where multi-jurisdictional coverage is needed. Contact us to assess how the Joint Harmonization Initiative affects your registration status and examination exposure. Relevant work we handle includes exchange and trading venue licensing, swap dealer compliance, commodity pool operator registration, crypto asset regulatory mapping, joint registration strategy, and enforcement defense.

Source: SEC Press Release No. 2026-26, SEC and CFTC Announce Historic Memorandum of Understanding Between Agencies, March 11, 2026. Official URL: https://www.sec.gov/newsroom/press-releases/2026-26-sec-cftc-announce-historic-memorandum-understanding-between-agencies. Confirmed March 31, 2026.

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