(Bloomberg) — Wall Street’s top market regulators are looking to better align US rules across agencies after years of industry complaints about how their rules and requirements sometimes conflict and can be repetitive.
The Securities and Exchange Commission and the Commodity Futures Trading Commission said Friday that they’ll hold a Sept. 29 event to discuss “regulatory harmonization.” Those efforts might include streamlining margin and capital frameworks, reporting standards, and harmonizing product and venue definitions, the agencies said in a press statement.
The agencies will also discuss regulation of new product categories and market developments, from prediction markets and perpetual futures to 24/7 trading in both their markets, SEC Chairman Paul Atkins told reporters.
Unlike many countries that have one primary regulator for financial markets, in the US, the SEC keeps tabs on stock and bond activities while the CFTC regulates derivatives trading. The split means that both agencies oversee units of Wall Street banks, hedge funds and other major financial firms.
“By working in lockstep, our two agencies can harness our nation’s unique regulatory structure into a source of strength for market participants, investors and Americans,” Atkins and acting CFTC Chairman Caroline Pham said in the joint statement.
The announcement follows on the agencies’ shared announcement earlier this week that staff at both agencies want to engage with industry on the trading of some spot-crypto products on both SEC and CFTC-regulated exchanges. Meanwhile, US senators are still weighing setting up a new regulatory framework for digital assets. The CFTC is expected to receive significant more authority over the burgeoning market under the legislation.
The SEC and CFTC have previously tried to better coordinate regulations, including in 2018 when the agencies issued a memorandum of understanding intended to make the agencies’ regulation of swaps and security-based swaps more consistent.
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