For much of the past decade the US watched the global crypto industry grow largely beyond its borders. Trading volumes, derivatives markets and financial innovation clustered offshore while US regulators wrestled with outdated rules and overlapping jurisdictions.

That dynamic may be starting to change. In a rare show of co-ordination the US Securities & Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) have launched a joint effort known as Project Crypto, aimed at harmonising oversight of digital asset markets and restoring US leadership in financial innovation.

The initiative comes as Congress debates comprehensive crypto market structure legislation and as President Donald Trump pushes to make the US what…