The Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) announced they will revive the Project Crypto initiative as part of a joint policy effort to prepare U.S. markets for the digital age.
SEC-CFTC Joint Efforts for Crypto Project
On Thursday, CFTC Chairman Michael Selig revealed that the regulatory agency is partnering with the SEC on its Project Crypto initiative to bring “coordination, consistency, and a unified approach to federal oversight of crypto asset markets.”
At a joint regulatory harmonization event, Selig and SEC Chairman Paul Atkins outlined their plan to promote a clear taxonomy of crypto assets, clarify jurisdictional boundaries, remove duplicate compliance requirements, and reduce regulatory fragmentation through their partnership.
The SEC-CFTC harmonization program will focus on fundamentals, as detailed by the chairs, including harmonized definitions, coordinated oversight, and transparent and secure data sharing among agencies. “Harmonization strengthens standards through consistency, predictability and economic rationality. »
The agencies aim to ensure that “innovation takes root on American soil, within American law and in service to American investors, customers and businesses,” Selig said during his opening remarks.
He added that he had directed CFTC staff to work with the SEC to study “joint codification” of Atkins’ recently established common-sense crypto asset taxonomy, “as an interim measure while Congress finalizes legislation.”
In a joint statement shared by the CFTC, the pro-industry presidents explained that the Crypto Project was designed to ensure that the United States is ready to strengthen its global financial leadership when Congress acts:
At its core, the Crypto Project and our broader harmonization efforts reflect a shared philosophy: financial regulation should be precise, not punitive. Rules must be narrowly tailored to address significant risks, agile enough to adapt to technological changes, and remain grounded in the statutory powers of our agencies.
Innovation exemption timetable pushed back
During the panel, Chairman Atkins discussed the timeline for the Commission’s long-awaited innovation exemption for the crypto industry, which was initially expected to occur before the end of January.
As Bitcoinist reported, the SEC chairman said in December that the regulatory agency could issue innovation exemption rules for crypto companies in early 2026. Notably, the Commission has been exploring an exemption to the rules since July 2025.
The measure would allow crypto companies to quickly launch products by complying with “certain principled conditions designed to achieve the fundamental policy objectives of the federal securities laws” instead of “onerous prescriptive regulatory requirements that impede productive economic activity.”
Atkins said the agency is still working on the innovation exemption, arguing that it “needs to measure twice and cut once.” As he noted, the agency wants to make a rule change that is “fit for purpose, that will allow enough people to be able to develop their products, you know, within a predictable wiggle room, and then with an end date, an off-ramp, that sort of thing.”
Additionally, he noted that last year’s government shutdown delayed progress on crypto regulation, adding that the potential new shutdown could further delay the highly anticipated measure.
Atkins denied that the SEC was waiting for the Market Structure Bill to introduce the innovation exemption, arguing that it was within the agency’s authority. However, he stressed that they were taking into account the upcoming regulations because “there are a lot of moving parts to the situation.”
“I just want to make sure that we keep the train moving at full speed and in the interest of all parties,” he said, without proposing a potential new timetable for the deployment of the innovation exemption.
At the same time, Chairman Selig also shared his intention to explore “ways in which the agency can encourage innovation in software development and support manufacturers in their efforts to achieve product-market fit.” This involves assessing whether an innovation exemption “may be appropriate in certain circumstances”.
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