The Chairman of the U.S. Securities and Exchange Commission (SEC), Paul Atkins, announced the beginning of a new phase of collaboration between the SEC and the Commodity Futures Trading Commission (CFTC). The goal of this collaboration is to unify approaches to financial market regulation without a formal merger of the two agencies. This step will eliminate the duplication of requirements, enhance market transparency, and strengthen the U.S.’s position as a global leader in financial services.
This is reported by Finway
Harmonization of Rules Instead of Merging Agencies
Paul Atkins emphasized that decades of parallel activities by the SEC and CFTC have resulted in overlapping regulatory requirements, bureaucratic delays, and a loss of innovative opportunities for businesses. According to him, now is the time for coordinated actions that will foster the development of modern markets and create favorable conditions for investors and companies.
“The era of regulatory fragmentation is coming to an end. It is time for harmonized, innovation-friendly oversight,” said the SEC Chairman.
The Need for Change Due to the Evolution of Financial Markets
He also highlighted that the CFTC was established back in 1974 when the structure of financial markets was much simpler. Today, the distinction between securities and derivatives has virtually disappeared, complicating the work of regulators. This is why the SEC and CFTC need to develop joint rules that will help avoid jurisdictional conflicts and ensure effective oversight of cutting-edge financial instruments.
Previously, Paul Atkins also noted that the SEC would move away from a strict enforcement policy regarding companies that have made minor technical regulatory violations. This stance is intended to promote transparency and support innovation in American markets.