Breaking Barriers: SEC-CFTC Host Historic Harmonization Roundtable

In what the agencies are touting as “a new era of collaboration” and “a new day for US capital markets,” the Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) held a historic joint roundtable on September 29 at the SEC’s headquarters (Roundtable), which was focused on harmonization efforts between the two US market regulators. The Roundtable was headlined with remarks from SEC Chairman Paul Atkins and CFTC Acting Chairman Caroline D. Pham, and also featured an impressive list of market participants, industry leaders and former regulators.[1]

Innovation Has Fled the United States

At the outset of the Roundtable, Chairman Atkins and Acting Chairman Pham stressed the importance of increased coordination, particularly in times of rapid technological innovation.  Among other things, they pointed to the two agencies’ divergent regulations and approaches as leading to stalled innovation in the United States, resulting in market participants and trading firms moving their operations and technological advancements overseas. In particular, Acting Chairman Pham remarked that “the turf war is over… [i]n recent years, the dynamic between our agencies could be described as one of competition rather than collaboration. That is not what this Administration wants.”[2]

Crypto Needs a Clear Framework

The Roundtable placed particular emphasis on developing a clear regulatory framework for cryptocurrency and other digital assets. Several panelists — themselves digital trading platforms — advocated for urgent innovation exemptions to prevent talent from moving offshore. Other panelists suggested that such exemptions should be party-neutral, so as not to unfairly advantage new entrants. Panelists also asked for quicker and more consistent product approval timelines, noting the CFTC’s shorter self-certification product listing process under Part 40 of the CFTC’s Regulations. 

“The SEC and CFTC have operated too often in conflict with one another, leaving the American public to bear the costs of duplication, delay, and uncertainty,” said Chairman Atkins.[3] "If we follow the path of our predecessors, America risks ceding leadership in the next chapter of financial history.”

24/7 Trading

Another major theme discussed during the Roundtable was the advent of 24-hours/7-days-a-week trading of securities, derivatives and other financial instruments. One panelist noted that risk does not take a break in the evenings and over the weekend. Other panelists suggested that crypto investors are finding workarounds from more traditional trading hours of operation. Roundtable panelists discussed what steps, if any, could lead to perpetual trading 24-hours/7-days-a-week. Such steps might include initial 24/5 trading, test markets in cash-settled deals, and settlement via stablecoins. 

Other Topics and Takeaways

There were many additional areas of suggested harmonization: margin requirements, swaps reporting, alignment of definitions, including for the term “US Person” under each agency’s derivatives regulations, post-trade date transparency, Treasury clearing, reduced data field burden, and other areas of regulatory overlap. 

Throughout the Roundtable, authorities expressed a willingness to respond to industry requests for better harmonization. “We should answer these questions before announcing jurisdictional claims,” said SEC Commissioner Mark Uyeda.[4] “Where one regulator already has a robust framework, the other should think carefully before layering its own rules on top.” 

Interestingly, SEC Chairman Atkins shot down speculation about a potential merger between the SEC and the CFTC, stating that the focus is and will remain instead on “harmonization” of regulatory oversight.[5]

Panelist and FIA President and CEO Walk Lukken released a statement after the event, encouraging the agencies to overcome roadblocks that afflicted five previous harmonization attempts. “All have been well-intentioned. But, if we are honest, they have not been enough. We need to do something different.”[6] 

While both Atkins and Pham plan to work together on a range of issues, the devil is in the details. And it remains to be seen what the agencies’ first joint act will be to harmonize their approaches. 

[1] https://www.sec.gov/newsroom/meetings-events/sec-cftc-joint-roundtable-sept-29-2025 

[2] https://www.cftc.gov/PressRoom/SpeechesTestimony/phamstatement092925 

[3] https://www.sec.gov/newsroom/speeches-statements/atkins-092925-harmonization-new-era-collaboration-between-sec-cftc  

[4] https://www.sec.gov/newsroom/speeches-statements/uyeda-092925-regulatory-disruption-remarks-sec-cftc-roundtable-regulatory-harmonization-efforts  

[5] https://www.sec.gov/newsroom/speeches-statements/atkins-092925-harmonization-new-era-collaboration-between-sec-cftc 

[6] https://www.fia.org/fia/articles/fias-lukken-calls-new-era-sec-cftc-collaboration