The SEC and CFTC are merging Project Crypto to streamline regulations for digital-asset markets. Agency chairs confirm the joint effort in Washington, D.C. The goal is to reduce overlapping rules and provide clarity as Congress considers a market-structure bill. The program will cover on-chain trading, clearing, settlement, and custody under both regulators.

The new initiative will establish a shared crypto-asset taxonomy, differentiate between securities and commodities, and eliminate duplicate registrations for firms overseen by both agencies. Project Crypto aims to bring coordination and coherence to federal oversight of crypto markets, moving past longstanding turf battles. A formal memorandum of understanding will solidify data-sharing and joint rulemaking efforts.

The project priorities include creating safe-harbor provisions for software developers, providing guidance on tokenized collateral, clarifying rules for leveraged crypto trading, and reviewing treatment of prediction markets and event contracts. The initiative is being implemented under the Trump administration, which aims to bring more crypto activity back onshore. Regulators are urging Congress to pass the CLARITY Act and related legislation while preparing to issue guidance under current law.

Read more at Yahoo Finance: SEC and CFTC Launch “Project Crypto” to Unite US Regulation