America’s financial markets are the strongest and most trusted in the world because they are built on clear rules and fair enforcement.
Instead of adhering to these principles, the Biden administration chased headlines with high-profile enforcement actions and instituted opaque regulations that hindered progress. But thanks to President Donald Trump’s leadership, U.S. financial regulators are returning to the basic principles that made our markets the envy of the world.
As new technologies reshape the financial services landscape, we must ensure that innovation thrives on American soil and under American law – serving everyday Americans.
To that end, the Securities and Exchange Commission (SEC) and Commodity Futures Trading Commission (CFTC) are relaunching Project Crypto as a joint policy initiative to better prepare U.S. markets for the digital age.
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President Donald Trump dances as he walks off stage after speaking to Republican lawmakers in the House of Representatives during their annual policy retreat, Tuesday, Jan. 6, 2026, in Washington. (Evan Vucci/AP Photo)
As markets move up the chain, regulators must keep pace. Congress is advancing bipartisan legislation to establish a federal framework for digital asset markets. But legislation alone cannot provide the clarity that investors and market participants need. We must combine this with disciplined implementation of regulations, based on merit neutrality and free market principles. These are outcomes that the SEC and the CFTC are ready for to usher in a new era of coordinated and sustainable financial regulation.
We designed Project Crypto to ensure that when Congress acts, the United States is ready to strengthen our global financial leadership. That includes sequencing new requirements – not stacking them – through sensible implementation roadmaps; creating clear regulations for participants who follow the rules; modernizing supervisory tools to reflect activity in the chain and hybrid market; and dealing transparently with newcomers, incumbents, investors and consumers.
We must act quickly to improve our rules and regulations to accommodate blockchain technology, digital assets and upcoming legislation, or we risk ceding these emerging markets to foreign regimes.
At its core, Project Crypto and our broader harmonization efforts reflect a shared philosophy: financial regulation should be precise, not punitive. Rules must be carefully tailored to address material risks, agile enough to adapt to technological changes, and remain anchored in the legal powers of our agencies. This principle guides our approach to registration, disclosure, market surveillance, custody, clearing and surveillance in the digital asset markets – while avoiding the reflex to impose inappropriate old structures on new technological realities.
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For too long, bureaucratic regulators have forced market participants to navigate boundaries that are unclear in application and misaligned, especially where economically similar activities are treated differently based solely on old legal silos. This fragmentation is not only troublesome; it limits innovation and hinders opportunities for investors.
In on-chain markets, where trading, clearing, settlement and custody are integrated, regulatory seams create friction that harms risk management, margin efficiency and supervisory effectiveness. As markets move, the chain moves, and participation deepens, these disruptions will only become greater.
Maintaining duplicate or conflicting requirements for the same economic activity undermines market resilience and regulatory clarity. The status quo cannot maintain American dominance in 21st century finance. Project Crypto aims to address – and where possible eliminate – these conflicts.
The SEC-CFTC harmonization agenda starts with fundamentals: aligned definitions, coordinated oversight, and seamless, secure data sharing between agencies. Market participants should not be saddled with duplicate agency registrations and sets of regulations to offer economically comparable products that can be effectively regulated under a one-size-fits-all approach. Harmonization strengthens standards through coherence, predictability and economic rationality.
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We must act quickly to improve our rules and regulations to accommodate blockchain technology, digital assets and upcoming legislation, or we risk ceding these emerging markets to foreign regimes.
Project Crypto represents a modern model of interagency coordination, recognizing that today’s markets do not conform to the silos of the 20th century. The SEC and CFTC bring complementary regulatory mandates, supervisory capabilities and market expertise. Working together, these capabilities become symbiotic rather than duplicative, providing clarity and principled oversight as market structures evolve.
The stakes are high. Global jurisdictions compete aggressively to attract digital asset activity; some prioritize speed over safeguards, while others impose rigidities that inhibit growth. America’s advantage has always been its ability to balance both.
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If we don’t provide clarity, innovation will migrate elsewhere. If we regulate with a heavy hand, we do not reduce the risk, we encourage it. Project Crypto reflects our shared belief that the United States can lead by doing what it has always done best: coupling a strong rule of law with an openness to progress.
The future of finance will be built somewhere. Through Project Crypto and disciplined, harmonized regulation with minimum effective doses, we’ll ensure it’s built here, under rules that protect investors, promote innovation, and strengthen America’s leadership in the global financial system.
Michael S. Selig is chairman of the U.S. Commodity Futures Trading Commission.
