SEC and CFTC are intensifying their push for clearer digital asset regulations as the two agencies officially relaunch a joint initiative to coordinate oversight of on-chain crypto markets.
SEC Chair Paul S. Atkins and CFTC Chair Michael S. Selig announced the revival of Project Crypto on Jan. 29, 2026, signaling a renewed effort to modernize how U.S. regulators supervise digital asset trading, clearing, settlement, and custody. The move comes amid growing pressure on Congress to pass long-awaited crypto market structure legislation.
In a joint statement, the two chairs said that crypto markets have largely shifted “on-chain,” meaning traditional regulatory approaches are no longer sufficient. As blockchain technology increasingly combines trading, clearing, settlement, and custody into single platforms, regulators face challenges caused by fragmented oversight and outdated rules.
Atkins and Selig urged lawmakers to act quickly, calling on Congress to pass the CLARITY Act along with broader crypto market structure bills. According to the chairs, legislation is essential to give regulators the authority and clarity needed to oversee fast-moving digital markets effectively.
They also outlined a regulatory philosophy they described as a “minimum-effective-dose” approach. Rather than imposing multiple new requirements all at once, the regulators said rules should be introduced in a sequenced and targeted way, focusing only on material risks and staying firmly within existing statutory authority. This approach, they argued, would allow compliant firms to operate without unnecessary regulatory friction.
One of Project Crypto’s core goals is to reduce inefficiencies created by overlapping jurisdictions. Currently, firms operating in on-chain markets may face duplicative registration and compliance obligations due to differing definitions and responsibilities between agencies. The chairs said aligning definitions, coordinating responsibilities, and improving data sharing could help close regulatory gaps and eliminate conflicts.
The initiative also reflects concern about global competition. Atkins and Selig warned that other countries are actively trying to attract digital asset activity, either by offering lighter regulatory regimes or by creating clearer legal frameworks. Overly restrictive or unclear U.S. rules, they said, could push innovation and investment offshore.
Beyond market structure, Atkins expressed support for expanding access to crypto assets through retirement accounts, signaling a broader vision for integrating digital assets into the traditional financial system.
The regulators emphasized that any new rules should be adapted to modern technology rather than forcing crypto markets into legacy frameworks. In the near term, they identified registration, disclosure, custody, clearing, and market surveillance as priority areas for coordinated oversight.
By relaunching Project Crypto, the SEC and CFTC are sending a clear message: regulatory clarity will require both swift action from Congress and close cooperation between agencies. With digital asset markets continuing to evolve, the pressure is now firmly on lawmakers to provide a statutory foundation that keeps innovation—and oversight—firmly rooted in the United States.
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