PANews reported on March 12 that, according to The Block, the U.S. Securities and Exchange Commission (SEC) and the China Federation of Trade Unions (CFTC) signed a memorandum of understanding, pledging to strengthen coordination and cooperation to support legitimate innovation, maintain market integrity, and ensure the protection of investors and clients. SEC Chairman Paul Atkins stated that decades of regulatory turf wars, duplicate registrations, and conflicting regulations between the two agencies have stifled innovation and pushed market participants to other jurisdictions.

The two agencies stated their commitment to developing federal policies that "fit the regulatory framework for crypto assets and other emerging technologies," and pledged in the memorandum of understanding to "closely coordinate and cooperate to remove, where appropriate, obstacles to the legal launch of crypto asset products." While memorandums of understanding are typically non-binding, the formal commitment by the two agencies to work closely together on policy measures, including those related to crypto, is a positive sign for digital asset advocates. CFTC Chairman Michael Selig stated that regulatory frameworks must evolve to meet the needs of market participants, and this agreement reinforces the commitment to harmonizing regulatory frameworks to provide comprehensive and seamless market regulation.