Crypto regulators push Congress for urgent market structure laws as SEC and CFTC relaunch Project Crypto to coordinate on‑chain oversight and close gaps.
Summary
- SEC Chair Atkins and CFTC Chair Selig relaunch Project Crypto to align oversight of on‑chain trading, clearing, settlement, and custody.
- The chairs urge Congress to pass the CLARITY Act and broader crypto market structure bills using a “minimum‑effective‑dose” regulatory approach.
- The plan aims to harmonize definitions, reduce duplicative registrations, and keep innovation in the U.S. amid rising global competition.
Securities and Exchange Commission Chair Paul S. Atkins called on Congress to pass crypto market structure legislation immediately as federal regulators announced a coordinated approach to digital asset oversight.
Commodity Futures Trading Commission Chair Michael S. Selig joined the SEC to relaunch Project Crypto on Jan. 29, 2026, according to statements from both agencies. The joint initiative aims to align SEC and CFTC oversight as digital asset markets increasingly operate on blockchain networks.
The announcement comes as lawmakers debate bipartisan crypto bills addressing market structure. Atkins and Selig stated in their joint statement that regulatory clarity requires both legislative action and coordinated implementation by federal agencies.
Project Crypto was described as a program designed to prepare U.S. markets for digital asset trading and settlement. The regulators stated that crypto markets have moved “on-chain,” requiring agencies to modernize oversight frameworks and surveillance capabilities.
The initiative seeks to establish coordinated regulation across agencies, according to the statement. The chairs argued that unclear rules and enforcement-focused approaches have constrained innovation and limited investor opportunities, calling for clear regulatory frameworks and consistent enforcement.
Selig and Atkins proposed that regulators should sequence new requirements rather than impose multiple obligations simultaneously, creating pathways for compliant market participants. The statement outlined a “minimum-effective-dose” regulatory approach, with rules focused on material risks and grounded in statutory authority.
The chairs noted that fragmented oversight creates regulatory gaps in on-chain markets, where trading, clearing, settlement, and custody functions are often integrated. Jurisdictional divisions between agencies produce duplicative requirements that reduce efficiency and regulatory clarity, according to the statement.
Project Crypto aims to eliminate regulatory conflicts by aligning definitions across agencies, coordinating oversight responsibilities, and enabling data sharing between regulators. The goal is to prevent firms from facing duplicative registrations for similar products, the statement said.
SEC seeks to attract global digita;l asset activity
The chairs warned that global jurisdictions are competing to attract digital asset activity, with some implementing lighter regulatory frameworks while others impose restrictions that may slow market development. They argued that overly restrictive regulation could drive innovation to other jurisdictions.
Atkins urged Congress to pass the CLARITY Act and broader market structure legislation, calling legislative action urgent. He also expressed support for expanding retirement account access to crypto assets. Both chairs stated that legislative action must be accompanied by coordinated implementation plans to provide regulatory clarity.
The statement emphasized that regulators should adapt rules to new technology rather than applying legacy frameworks, focusing on material risks. Registration, disclosure, custody, clearing, and surveillance were identified as near-term priority areas.
The initiative places pressure on Congress to establish statutory frameworks for digital asset markets, with the chairs indicating that coordinated regulatory implementation would follow legislative progress.
