US regulatory 'turf war is over' - CFTC chair Pham

CFTC acting chair Caroline Pham told a joint roundtable on regulatory harmonisation efforts that, while the regulatory lanes weren’t always clear, the two agencies will now work together for the mutual benefit of the financial markets.

At the same event, SEC chairman Paul Atkins said on Monday the focus is on collaboration between the US market regulators, adding that combining the two agencies will ultimately be decided by Congress.

“The era of regulatory fragmentation is ending. The age of harmonised, innovation-friendly oversight is here,” Atkins said.

Together, both agencies can offer investor protection, along with financial innovation, Atkins added.

The acting CFTC chair said she would ‘dispel some of the FUD (fear, uncertainty, and doubt)’ regarding CFTC’s operations on crypto.

Futures Industry Association president and CEO Walt Lukken said that failures to harmonise regulations across these two agencies in the past have resulted in impractical and unstable regulatory structures, most notably in the case of single stock futures.

Lukken also said clear lines between jurisdictions and the avoidance of overlapping regulation will provide regulatory certainty and accountability.

The two main US regulators earlier this month pledged to co-ordinate efforts on 24/7 trading, events and perpetual contracts, and cross-margining of products overseen by the two agencies.

In May, the SEC chair signalled a further loosening of regulatory restrictions on crypto firms during another roundtable event.