The SEC and CFTC have announced plans for improved collaboration in overseeing the financial markets, which aims to resolve longstanding conflicts between the two regulatory bodies.

According to a memorandum of understanding issued on Wednesday, both the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission recognized the critical need for harmonious regulation amid rising technologies like cryptocurrency. They stated:

“New trading models, digital infrastructure, and onchain, automated systems increasingly blur traditional jurisdictional lines.”

To tackle these challenges, both agencies intend to provide regulatory clarity based on technology-neutral guidelines and will share information regarding issues that are mutually beneficial for their regulatory missions.

In a separate announcement, SEC chair Paul Atkins emphasized that this collaboration is essential for restoring the relationship between the agencies:

“For decades, regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions.”

Both regulatory bodies have made progress toward making the U.S. the “crypto capital of the world,” implementing initiatives like a crypto-specific task force and an advisory committee focusing on the continuous development of innovations in crypto and AI.

The new regulatory strategy, described as a “minimum effective dose”, is intended to promote innovation while ensuring market integrity and global competitiveness.