From the journal

SEC and CFTC sign coordination MOU and joint crypto interpretation, March 2026

On 11 March 2026 SEC Chairman Paul Atkins and CFTC Chairman Michael Selig signed a Memorandum of Understanding for coordinated digital asset oversight. On 17 March 2026 the two agencies jointly issued an interpretation on how the federal securities laws apply to crypto assets and crypto transactions. The MOU supersedes the agencies' 2018 MOU and sets six core areas for harmonised rulemaking.

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On 11 March 2026 SEC Chairman Paul S. Atkins and CFTC Chairman Michael S. Selig signed a new Memorandum of Understanding between the two agencies. On 17 March 2026 the SEC and the CFTC jointly issued an interpretive release on the application of the federal securities laws to crypto assets and crypto asset transactions. Both items are final agency actions. The MOU is in force. The joint interpretation is effective as published.

The MOU supersedes the SEC-CFTC Memorandum of Understanding of 11 July 2018. It reaffirms the 17 March 2004 MOU on the oversight of security futures products. Six coordination areas are named in the new MOU: joint interpretations and rulemakings on product definitions; harmonised treatment of clearing, margin, and collateral; reduced frictions for dually registered exchanges and intermediaries; coordinated supervision of trading venues; information sharing on enforcement priorities; and a joint approach to innovation programs. The 17 March 2026 joint interpretive release addresses when a crypto asset is offered or sold as a security under Section 2(a)(1) of the Securities Act of 1933 and Section 3(a)(10) of the Securities Exchange Act of 1934. It also addresses when transactions in crypto assets fall outside SEC jurisdiction and within CFTC commodity oversight under Section 1a of the Commodity Exchange Act.

Crypto exchanges, broker-dealers, futures commission merchants, derivatives clearing organisations, and trading venues now operate under a unified federal posture. Token issuers gain clearer guidance on when a primary offering may be structured outside the Howey test. Dually registered exchanges face fewer overlapping rulemakings on margin, custody, and clearing. CFTC-registered DCOs handling tokenised commodities can rely on the joint interpretation when designing settlement and margin processes. Institutional investors and asset managers using digital asset products gain a more stable supervisory posture for product approvals and listings.

The interpretation does not classify any specific token. It does not amend prior SEC no-action letters or CFTC enforcement orders. The agencies reserve discretion to bring enforcement actions on a case-by case basis. State securities regulators and state money transmitter rules continue to apply on top of federal coordination. Pending Congressional bills, including the CLARITY Act and stablecoin legislation, may displace parts of the agencies' interpretive position once enacted.

Licentium advises token issuers, exchanges, brokers, and clearing venues on US federal digital asset registration and product structuring, in coordination with a partner network of US securities and derivatives counsel. Work we undertake includes Howey and Reves analysis, CFTC commodity classification, exchange and ATS registration scoping, MOU aligned compliance design, joint interpretation memos, and dual-registration uplift. Contact us for a US digital asset readiness scope.

Source: U.S. Securities and Exchange Commission, Press Release 2026-26, SEC and CFTC Announce Historic Memorandum of Understanding Between Agencies, 11 March 2026, https://www.sec.gov/newsroom/press-releases/2026-26-sec-cftc-announce-historic-memorandum-understanding-between-agencies

The information provided is not legal, tax, investment, or accounting advice and should not be used as such. It is for discussion purposes only. Seek guidance from your own legal counsel and advisors on any matters. The views presented are those of the author and not any other individual or organization. Some parts of the text may be automatically generated. The author of this material makes no guarantees or warranties about the accuracy or completeness of the information.

Crypto Regulatory

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