CFTC Acting Chair Caroline Pham declared the turf war with the SEC over crypto regulation is “over,” as both agencies push harmonization while lawmakers advance the Clarity Act.

CFTC and SEC declare end to turf war over crypto rules

For the first time in years of open confrontation, two key US regulators — the CFTC and the SEC — have officially declared that the “war for authority” over the crypto market is over. This was stated by the acting chair of the CFTC Caroline Pham at a joint roundtable with the SEC in Washington.

“This is a new day, and the turf war is over,” — she emphasized. “We are both responsible for adjacent parts of the financial markets, and the regulatory boundaries between our agencies have not always been clear. This has created unnecessary friction and headaches for market participants who depend on us.”

Context: Who regulates crypto

The topic of jurisdiction has been a stumbling block for years. Former CFTC Chairman Rustin Benham argued that most crypto assets are commodities, while former SEC Chairman Gary Gensler insisted that they fall under the definition of securities.

Meanwhile, Congress is pushing ahead with the Clarity Act, which could give the CFTC broader authority over digital assets and establish a unified market structure.

SEC doesn’t want a merger

Rumors about a possible merger between the two agencies have been dismissed again. SEC Chairman Paul Atkins stressed:

“We are focused on harmonization, not a merger between the SEC and the CFTC. That decision belongs to Congress and the President. Fantasies about government reorganization only distract from the historic opportunity that is before us.”

Market Dialogue

A joint roundtable continues through Monday, with representatives from Kalshi, Kraken, Polymarket, Robinhood, Bank of America, and J.P. Morgan.

This symbolizes an attempt to establish cooperation between regulators and the market — and for the first time in a long time, to show a united front to the industry.