Catenaa, Wednesday, February 04, 2026-US financial regulators moved to align cryptocurrency oversight as the Commodity Futures Trading Commission and the Securities and Exchange Commission announced a joint initiative known as Project Crypto.
The effort brings the two agencies together as Congress continues work on legislation to define digital asset market structure and divide regulatory authority.
Regulators said crypto markets increasingly span trading, custody and risk management functions that cut across traditional agency boundaries.
Project Crypto marks a shift from past disagreements between the agencies over jurisdiction. In earlier years, the CFTC argued that most digital assets fell under commodities rules, while the SEC asserted that many tokens should be treated as securities.
That divide narrowed last year as agency leaders signaled a willingness to coordinate policy.
CFTC Chair Michael Selig said the agency will work with the SEC to develop a unified approach to oversight and reduce uncertainty for market participants.
As part of the initiative, staff have been directed to explore joint rulemaking tied to a proposed taxonomy that would distinguish between securities and non-securities in crypto markets while Congress finalizes legislation.
The announcement comes as lawmakers face hurdles advancing digital asset bills. The Senate Agriculture Committee recently moved its proposal forward along party lines, while action in the Senate Banking Committee has stalled amid disagreements over stablecoin policy.
Selig also outlined changes to the CFTC’s approach to prediction markets. The agency plans to withdraw earlier guidance that restricted certain event contracts and to draft new rules establishing clearer standards for those products. Prediction markets linked to crypto platforms have expanded rapidly in the past year.
Regulators said Project Crypto is intended to modernize oversight while maintaining investor protections during a period of legislative transition.
