The U.S. Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) have relaunched Project Crypto on January 29 as a coordinated initiative to prepare for upcoming federal digital asset legislation. The move aims to reduce jurisdictional fragmentation between the agencies. Chairs Paul S. Atkins and Michael S. Selig emphasized harmonized oversight during remarks at CFTC headquarters.
On January 29, SEC Chair Paul S. Atkins and CFTC Chair Michael S. Selig announced the relaunch of Project Crypto at an event held at CFTC headquarters in Washington, D.C. The initiative, now positioned as a joint interagency effort, seeks to address longstanding issues of jurisdictional overlap in digital asset regulation while anticipating new federal market structure legislation.
The chairs described the relaunch as a step toward greater coordination, noting that regulatory clarity will require disciplined implementation across both agencies once Congress establishes a statutory framework. Historical efforts at cooperation during the previous administration faced perceptions of a "turf war," but recent developments suggest improved prospects for harmony. These include the SEC's shift away from expansive use of the Howey Test in litigation, active congressional work on definitional clarity for digital assets as securities or commodities, and the personal and professional ties between Atkins and Selig—Selig previously served as a senior adviser to Atkins and chief counsel for the SEC's Crypto Task Force under Commissioner Hester Peirce.
Key priorities outlined for the renewed Project Crypto include aligning definitions and oversight approaches to ensure consistent treatment of similar digital asset activities. The agencies aim to minimize duplicative requirements in areas like trading, clearing, settlement, and custody. CFTC Chair Selig highlighted that "regulatory seams create friction that impairs risk management, margin efficiency, and surveillance effectiveness." Additional focuses involve sequencing new obligations to ease transitions for market participants and enhancing surveillance tools for on-chain and hybrid market activities through better data sharing.
This expansion builds on earlier SEC-led Project Crypto efforts, emphasizing statutory authority and market integrity over enforcement-driven policies. The initiative signals preparation for legislative advancements that could guide future rulemaking.
