SEC, CFTC meet on harmonizing crypto efforts

The Securities and Exchange Commission and Commodity Futures Trading Commission met last week to discuss crypto harmonization between the two agencies.

Highlights: SEC Chairman Paul Atkins and CFTC Chairman Michael Selig said:

• Intermediated trading will continue to play an important role in crypto markets.

• The CFTC supports lawful innovation in prediction markets.

• Regulation by enforcement is dead, and market structure legislation will advance the CFTC's goals of modernizing and future-proofing U.S. markets.

• Under Atkins’ crypto asset taxonomy, digital assets, digital collectibles, and digital tools are not securities even when they are sold as part of an investment contract.

• The CFTC will develop rules to deploy additional forms of eligible tokenized collateral and will assess whether an innovation exemption is appropriate.

• The SEC has provided technical assistance to both houses of Congress as they develop market structure.