FIA’s Lukken Urges SEC and CFTC to End Turf Battles, Embrace Unified Oversight

3 weeks ago

0 13 2 minutes read

Walt Lukken

FIA President and CEO Walt Lukken has urged the Securities and platform Commission (SEC) and the Commodity Futures Trading Commission (CFTC) to usher in a “new era” of collaboration, following his participation in a joint roundtable hosted by the two market regulators. The meeting, designed to promote better coordination, highlighted the importance of harmonized oversight for both financial innovation and market stability.“I commend Chair Atkins and Acting Chair Pham for holding this roundtable and setting the stage for a new era in SEC-CFTC collaboration,” Lukken said. “An open dialogue is exactly what we need to improve collaboration between these two government agencies for the benefit of all market participants.”Lukken, a former CFTC commissioner and acting chair during the 2008 financial crisis, drew on his experience in both government and the private sector to stress the risks of fragmented regulation. He cited the failed experiment with single stock futures as an example of how dual oversight can doom innovative products. “Dual clear jurisdictional lines and regulatory certainty as prerequisites for responsible innovation.

Key Recommendations

Reinstate a Joint Advisory Committee: Empower it to prioritize innovation and public accountability in harmonization efforts.
Joint Rulemakings: Allow the agencies to jointly address hybrid instruments such as digital assets, security futures, and portfolio margining.
Shared Definitions and Taxonomies: Establish a common asset classes.
Cross-Agency Training and Staff Secondments: Build trust and shared expertise through structured platforms between SEC and CFTC staff.

Why Collaboration Matters

Lukken emphasized that smart regulation underpins the success of U.S. markets, which remain the world’s most advanced. With the rapid pace of technological and financial innovation, regulators must be nimble enough to address new risks, from fraud and market manipulation to systemic vulnerabilities. “The pace of change is undoubtedly quickening in our markets. We must have a regulatory structure that can keep up,” he said.

He praised the CFTC’s principles-based approach, exclusive federal jurisdiction, and flexibility under the Commodity Futures Modernization Act as features that have historically supported innovation. At the identical time, he called for better information sharing, cooperative enforcement, and harmonization between the two regulators to avoid repeating past mistakes.

Takeaway

FIA is pressing for structured, transparent, and accountable collaboration between the SEC and CFTC. Lukken’s message: clear jurisdictional lines, coordinated oversight, and a pro-innovation mindset are essential to ensuring U.S. markets remain the global leader in finance.

3 weeks ago

0 13 2 minutes read