U.S. Securities and Exchange Commission chair outlines SEC-CFTC harmonization agenda to reduce duplicative regulation

In remarks at an SEC-CFTC joint roundtable on regulatory harmonization, U.S. Securities and Exchange Commission Chairman Paul S. Atkins set out a push for closer coordination with the Commodity Futures Trading Commission to reduce duplicative and sometimes conflicting regulation and provide greater clarity for market participants. He stressed that the priority is harmonization rather than a merger of the two agencies, which he said would be a matter for Congress and the President. Atkins argued that regulatory fragmentation has imposed costs through duplication, delay and uncertainty, and cited concerns that innovators have taken products and structures offshore while investors face duplicative collateral requirements that tie up capital. He linked the current overlap to the historical jurisdictional split following the CFTC’s creation in 1974 and said converging markets and new product development now require a more unified regulatory approach that preserves investor protections while being more compatible with innovation. He invited industry input on areas of overlapping jurisdiction and signalled a continuing dialogue with the CFTC over the coming months and years, alongside engagement with Congress and counterparts across the Administration.