Tag: Speeches

Now, before I proceed further, it is instructive to place the harmony that we are working toward within the context of our history. For decades, Congress has maintained a functional division between the regulation of securities and commodity derivatives. That framework has served our markets well. After all, the Securities Exchange Act and the Commodity Exchange Act reflect different histories and distinct purposes.

The SEC, born from the ashes of the 1929 market crash, has overseen securities markets with a mission to protect investors; maintain fair, orderly, and efficient markets; and facilitate capital formation. The CFTC, while formally created in 1974, has deep roots regulating commodity futures and commodity derivatives markets with its own statutory framework and regulatory philosophy.

This division perhaps made some sense at a time when these two markets were distinct ecosystems. But over time, innovation has a way of blurring those boundaries.

When regulatory regimes fail to keep up—and diverge without clear justification—efficiency does not improve, and market integrity does not strengthen. Instead, unnecessary divergence simply imposes cost. Regulatory friction is a tax on efficient risk allocation, and in globally competitive markets, that burden is ultimately borne by American investors, savers, and businesses.

With these principles in mind, and under President Trump’s leadership, I am pleased to report that we are reorienting our approach toward a new golden age of regulatory coherence. Yesterday, Chairman Selig eloquently offered you all a glimpse into that golden age by affirming that “harmonization is not a side-show; it is integral to opening up new avenues for entrepreneurs. Once innovators know that regulators are paying attention to their own core mandates, these risk-takers are more likely to move forward.”

Source: Fostering Regulatory Harmony Between the SEC and CFTC