Two of the most influential U.S. regulators have agreed to better coordinate supervision of financial markets in a bid to end decades-long “regulatory wars” between them.
According to Following a memorandum of understanding written on Wednesday, the U.S. Securities and Exchange Commission and the U.S. Commodity Futures Trading Commission said it was a “crucial time” for harmonious regulation as recent technologies such as cryptocurrencies make it harder to monitor markets:
“New trading models, digital infrastructure and automated onchain systems are increasingly blurring traditional jurisdictional boundaries,” they said, especially as market participants operate across different platforms and asset classes.
To address this issue, the SEC and CFTC said they will strive to provide transparency and regulatory certainty based on technology-neutral regulation and share information and data on matters of “common regulatory interest” to fulfill their respective regulatory mandates.
In a separate statement, SEC Chairman Paul Atkins he said The memo is the latest step towards repairing inter-agency relations:
“For decades, regulatory wars, duplication of agency registrations, and different sets of rules between the SEC and CFTC have stifled innovation and pushed market participants to other jurisdictions.”
Both the SEC and CFTC have made strides to advance U.S. President Donald Trump’s mission to make the United States the “crypto capital of the world” by establishing a cryptocurrency task force and establishing an advisory committee to ensure the continued development of cryptocurrencies, artificial intelligence and other emerging technology innovations in the U.S.
The agencies also noted in the memo that they strive to provide a “fit for purpose regulatory framework for crypto assets.”
Related: SEC chairman calls for “coordinated oversight” among US regulators
Regulatory transparency will be provided to market participants operating everything from trading platforms, clearing houses and data repositories, to collective investment vehicles, dealers and intermediaries, as well as products covering securities and derivatives frameworks.
The SEC and CFTC will adopt a “minimum effective dose” strategy.
Both agencies said they also plan to adopt a “minimum effective dose” regulatory strategy to support innovation while maintaining market integrity and remaining competitive in the global marketplace.
The term “minimum effective dose” is a pharmacological term defined as the lowest dose of a drug that produces the desired therapeutic benefit.
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