The SEC and CFTC signed a landmark MOU on March 11, formally classifying Bitcoin and Ethereum as digital commodities and ending years of regulatory turf wars.
The SEC and CFTC announced a landmark Memorandum of Understanding on March 11 that formally classifies Bitcoin and Ethereum as digital commodities under CFTC jurisdiction, marking the most significant U.S. crypto regulatory shift in years.
SEC Chairman Paul Atkins and CFTC Chairman Michael Selig signed the MOU on March 11, 2026, establishing a joint framework for crypto oversight. The agreement explicitly classifies Bitcoin and Ethereum as digital commodities regulated by the CFTC, while tokens issued through capital-raising mechanisms that meet the Howey Test remain securities under SEC oversight.
The MOU creates three operational mechanisms: quarterly joint meetings to align on asset classifications, shared market surveillance infrastructure for real-time trading data, and a coordinated enforcement protocol to eliminate conflicting legal actions. Atkins stated that "regulatory turf wars, duplicative agency registrations, and different sets of regulations between the SEC and CFTC have stifled innovation."
This agreement ends a regulatory gray zone that has plagued the crypto industry since 2017. The SEC under former Chair Gary Gensler had repeatedly suggested Ethereum could be a security, creating uncertainty that deterred institutional capital and complicated product approvals.
With clear commodity classification, Ethereum-based financial products can now follow a more predictable regulatory path. U.S. spot Bitcoin ETFs recorded $568.45 million in net inflows over the first two weeks of March, their first consecutive positive weeks in five months. The MOU coincides with the Senate passing a CBDC ban on March 12 by an 89-10 vote, signaling broad bipartisan support for private crypto innovation over government-issued digital currencies.
The MOU now enters an implementation phase with joint working groups tasked with analyzing emerging crypto products. Key questions remain for altcoins and DeFi tokens that may fall between commodity and security definitions. The CFTC commission currently has only Chairman Selig with no other commissioners, and the SEC has two vacant Democrat seats, meaning the full framework could shift as new appointees are confirmed.
The SEC-CFTC MOU represents the clearest regulatory signal the U.S. crypto market has received. Implementation details and classification of assets beyond Bitcoin and Ethereum will continue to develop in the coming months.
Wall Street giant Citigroup projects Bitcoin could reach $143,000 within 12 months, citing ETF demand and regulatory tailwinds as key catalysts.
The largest US bank is assessing spot and derivatives trading services as regulatory clarity enables traditional finance to deepen crypto involvement.
All 12 U.S. spot Bitcoin ETFs saw positive inflows on March 2, totaling $458M as BTC rebounds from February lows.
Disclaimer: News content is for informational purposes only and should not be considered financial advice. Market conditions can change rapidly. Always conduct your own research.
