On 21 May 2026, the United States Securities and Exchange Commission (“US SEC”) and the National Futures Association (“NFA”) executed a Memorandum of Understanding (“MOU”), which establishes the framework for cooperation and information sharing in areas of common regulatory interest and broadly covers securities markets and derivatives markets oversight. The arrangement applies to entities supervised under federal securities laws and the United States Commodity Exchange Act. The MOU was signed by US SEC Chairman Paul S. Atkins and NFA President and CEO Thomas W. Sexton. The agreement covers examination planning, risk assessment, emerging risks, and financial market conditions. It also addresses confidentiality and safeguarding of non-public information. This development carries direct relevance for crypto-native broker-dealers, swap dealers, security-based swap participants, and digital asset derivatives operators navigating dual-regime oversight in the United States.
Applicable Institutional Mandates
The US SEC and NFA under the terms of the MOU have illustrated “[t]he mission of the U.S. Securities and Exchange Commission (the ‘US SEC’) is to protect investors, maintain fair, orderly, and efficient securities markets, and facilitate capital formation.”
The MOU also records that “[t]he mission of the National Futures Association (the ‘NFA’) is to safeguard the integrity of the derivatives markets, protect investors, and ensure its member firms meet their regulatory responsibilities.”
The US SEC consistently throughout the MOU identifies its supervisory perimeter, which includes “securities brokers, securities dealers, security-based swap dealers, major security-based swap participants, security-based swap data repositories, security-based swap execution facilities, clearing agencies, transfer agents, exchanges, investment advisers, investment companies, and other entities.”
The NFA consistently throughout the MOU identifies its supervisory perimeter, which includes “commodity pool operators, commodity trading advisors, introducing brokers, futures commission merchants, retail foreign exchange dealers and the associated persons of these Commodity Futures Trading Commission (CFTC) registrants, as well as swap dealers and major swap participants.”
Purpose and Scope of the MOU
The US SEC and NFA in the MOU explain that the arrangement “reflects the Parties’ intent to collaborate, cooperate, and share information in areas of common regulatory interest to facilitate their oversight of financial services firms and markets.”
The parties further record their shared objective. The MOU states that “[t]he Parties further recognize the importance of cooperation and coordination in effectively carrying out their responsibilities and maintaining the highest level of oversight quality while minimizing duplicative efforts.”
The MOU clarifies its non-binding character. It states that “[t]his MOU does not create legally binding obligations on the SEC or the NFA and does not create any right enforceable against the SEC or the NFA or any of their officers or employees or any other person.”
Information Sharing in Areas of Common Regulatory Interest
The US SEC and NFA in the MOU set out the operational mechanics of coordination. The MOU records that “each Party will endeavor to inform the other, in advance where feasible and otherwise as soon as practicable, of issues that may impact the regulatory or supervisory interests of the other Party.”
The MOU provides for staff-level engagement. It states that “the staff of the Parties agree to meet periodically to discuss matters of mutual interest, such as risk assessment, examination planning, examination findings, supervisory priorities, and observed trends and emerging risks related to SEC Supervised Persons and NFA Supervised Persons.”
Each party retains autonomy in its examination function. The MOU notes that “[e]ach Party will make its own determinations regarding which regulated entities to examine, how to conduct examinations, and what findings to make.”
Categories of Information Available for Sharing
The US SEC consistently throughout the MOU sets out the information categories it may share. The MOU records that the US SEC may, in its discretion, provide the NFA with “[i]nformation regarding examinations of SEC Supervised Persons who are of regulatory interest to the NFA,” as well as “[i]nformation regarding the financial markets, including in particular securities markets, and the SEC’s assessment of the conditions in such markets, that may materially affect the operations or financial condition of NFA Supervised Persons.”
The NFA consistently throughout the MOU sets out the reciprocal categories. It may provide the US SEC with “[i]nformation regarding examinations of NFA Supervised Persons who are of regulatory interest to the SEC,” together with “[i]nformation regarding the financial markets, including in particular derivatives markets, and the NFA assessment of the conditions in such markets, that may materially affect the operations or financial condition of SEC Supervised Persons.”
Confidentiality and Permissible Uses
The US SEC and NFA in the MOU treat shared information as presumptively non-public. The MOU states that “[a]ll information shared pursuant to this MOU and any information substantially and directly derived therefrom is presumed to be non-public, unless the Providing Party specifies in writing that it is not.”
The MOU specifies the permissible internal uses. It records that “[n]on-public information received under this MOU from a Providing Party may be used internally by the Receiving Party to inform any examination, swap dealer model approval, disciplinary or enforcement investigation, proceeding, civil action, oversight, or general research.”
The MOU also addresses third-party demands for disclosure. It provides that the Receiving Party will, “unless prohibited by law, notify the Providing Party in writing, as soon as practicable, of any legally enforceable demand or request for such non-public information.”
The MOU further records that the Receiving Party will “attempt, to the extent practicable, to secure a protective order to preserve, protect, and maintain the confidentiality of the information and any privileges associated therewith.”
Interaction with the CFTC
The US SEC and NFA in the MOU recognise the role of the Commodity Futures Trading Commission (“CFTC”) as the NFA’s primary regulator. The MOU records that “[t]o the extent any of the information requested by the SEC is information of the CFTC, the SEC will request the information directly from the CFTC pursuant to the March 11, 2026 Memorandum of Understanding (the ‘March 2026 MOU’) between the SEC and the CFTC.”
The MOU also addresses CFTC requests routed through the NFA. It states that “[i]f, in connection with its oversight authority over the NFA, the CFTC requests information from the NFA that the NFA obtained from the SEC under this MOU, the NFA shall inform the CFTC that the information was obtained from the SEC and request that the CFTC seek the information directly from the SEC pursuant to the March 2026 MOU.”
Safeguarding Non-Public Information
The US SEC and NFA in the MOU set out information security expectations. The MOU records that each party agrees to maintain “appropriate administrative, technical, and physical safeguards, that are designed to protect the confidentiality of any non-public information received pursuant to this MOU.”
The MOU references prevailing federal standards. It states that safeguards “will include the use of appropriate data storage and data protection in accordance with applicable federal government information security standards and best practices established by the National Institute of Standards and Technology (NIST), including encryption at rest and encryption in transit.”
Access controls are also specified. The MOU records that safeguards “will include restricting access to such information to only those staff and contractors of the Receiving Party who have a need to know the information in the performance of their official work duties.”
Points of Contact
The US SEC and NFA in the MOU designate specific officers as channels for coordination. The MOU records that the US SEC’s point of contact is “the Director of the Division of Examinations, or his or her designees.” The NFA’s point of contact is “the Head of the Member Oversight Department, or his or her designees.”
Statements by Leadership
US SEC Chairman Paul S. Atkins stated, “Regulatory bodies working together should not be a novel concept. It should be the norm. Coordination between regulatory organizations provides businesses a predictable, straightforward path to compliance and comprehensive protections for investors that build trust in our markets. This memorandum is another step in furthering the SEC’s efforts to streamline cooperation with other regulatory organizations and alleviate the potential for duplicative or conflicting oversight.”
NFA President and CEO Thomas W. Sexton stated, “We look forward to continuing our coordination efforts with the SEC under this formal framework. We believe this memorandum represents an important milestone for NFA and will allow us to further foster our mission of protecting customers and ensuring market integrity.”
Effective Date and Termination
The US SEC and NFA in the MOU specify operational continuity provisions. The MOU records that it “shall become effective as of the date of its signing, shall remain effective unless terminated by either Party, and may be revised or modified, upon agreement of the Parties.”
The MOU also addresses termination. It records that “[e]ither Party may terminate the MOU upon 30 days’ written notice to the other Party.” Post-termination confidentiality is preserved, with the MOU stating that “all information that was provided pursuant to the MOU shall remain confidential and shall continue to be governed by the terms of Article IV.”
Practical Considerations for Market Participants
Crypto-native broker-dealers, digital asset swap participants, and dual-registered entities may consider undertaking a coordinated compliance review across both regulatory regimes. Entities operating as both NFA member firms and US SEC supervised persons can enhance preparedness by aligning examination response protocols across the two perimeters.
Firms may consider mapping their data retention and document production workflows to anticipate parallel information requests originating from either party. Compliance teams can strengthen internal escalation pathways for cross-referencing examination findings and supervisory inquiries.
Entities involved in security-based swap and swap dealer activities may benefit from reviewing their disclosure and reporting frameworks in light of the coordinated examination posture signalled by the MOU. The reference to swap dealer model approvals suggests that quantitative and risk modelling documentation may attract joint scrutiny.
Market participants can also consider monitoring the interplay between the US SEC and NFA MOU and the earlier March 2026 SEC-CFTC MOU. The layered architecture of information sharing across these arrangements warrants careful attention to chain-of-custody for non-public submissions.
Conclusion
The US SEC and NFA MOU dated 21 May 2026 formalises a coordinated supervisory framework spanning the securities and derivatives perimeters in the United States. The arrangement reinforces confidentiality protections while expanding the operational scope of staff-level engagement. Although the MOU does not create binding legal obligations, it signals a policy direction towards integrated oversight of dual-registered market participants. Crypto entities, digital asset derivatives operators, and firms straddling both regulatory regimes can consider this development as an opportunity to recalibrate their compliance, examination readiness, and information governance frameworks. Continued monitoring of subsequent inter-agency coordination arrangements remains advisable for stakeholders operating across the United States financial markets ecosystem.
