Major Shift in U.S. Cryptocurrency Regulation: CFTC and SEC Join Forces to Promote "Project Crypto," DeFi and Perpetual Contracts May Be Included in New Regulations

On March 11, the U.S. Commodity Futures Trading Commission (CFTC) Chairman Mike Selig stated at the FIA Global Clearing Market Conference in Boca Raton, Florida, that the U.S. is accelerating the development of a new digital asset regulatory framework and narrowing regulatory gaps through cooperation with the U.S. Securities and Exchange Commission (SEC). This regulatory initiative is part of “Project Crypto,” focusing on key areas such as prediction markets, DeFi software, crypto perpetual contracts, spot margin trading, and AI trading systems.

Mike Selig pointed out that the longstanding regulatory jurisdiction disputes between the CFTC and SEC are easing. SEC Chairman Paul Atkins and the CFTC have begun closer coordination, jointly advancing regulatory policies to reduce the need for companies to communicate repeatedly between different agencies. Paul Atkins stated that the two agencies are considering updating their Memoranda of Understanding and plan to hold joint staff meetings on new product applications to strengthen cooperation in review processes and enforcement actions.

Regarding specific regulatory topics, prediction markets are currently a key focus area. Mike Selig revealed that the CFTC will draft new guidance to clarify the listing and trading rules for event contracts under the U.S. regulatory system and plans to issue a pre-rulemaking notice to gather market feedback. He emphasized that the CFTC has long-standing experience regulating prediction markets and will continue to uphold its statutory regulatory authority.

Meanwhile, the decentralized finance (DeFi) ecosystem is also entering the policy assessment stage. The CFTC is studying whether developers of non-custodial software systems, such as crypto wallets and DeFi application teams, need to trigger intermediary registration requirements. The regulator also plans to establish clearer rules for retail spot crypto trading involving leverage or financing, creating unified standards for market margin trading.

Additionally, perpetual contracts in crypto derivatives are also under review. Mike Selig stated that regulators are evaluating how to clearly define “genuine crypto perpetual contracts,” as these products play a significant role in the global digital asset trading market but still lack clear policy guidance within the U.S. regulatory framework.

It is also noteworthy that AI trading systems are included in policy discussions. Mike Selig pointed out that AI-driven automated trading is rapidly transforming the digital asset market structure, with these systems executing orders at speeds far beyond human capabilities, posing new challenges for market regulation.

Analysts believe that as the CFTC and SEC gradually establish coordinated regulatory mechanisms, U.S. digital asset regulation may enter a new phase. A clearer regulatory framework will not only help reduce compliance uncertainties for businesses but also potentially promote more crypto innovation projects to develop in the U.S. market.