CFTC Advances Crypto Regulations After Senate Setback
The Commodity Futures Trading Commission (CFTC) has taken a significant step in regulating the crypto market by submitting a prerule-stage filing to the White House. On September 17, 2026, the CFTC proposed Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets to the Office of Information and Regulatory Affairs (OIRA). This move comes just two days after the Senate failed to pass the CLARITY Act, which aimed to expand the CFTC's authority over digital commodities.
The filing, logged under Regulation Identifier Number 3038-AF80, seeks to establish oversight for crypto asset trading using the CFTC's existing legal framework. It also aims to clarify how crypto assets differ from other commodities. However, no formal text or detailed regulations have been released to the public yet. The proposal still needs to undergo additional review, a public comment period, and further votes or actions by the Commission.
The Senate's failure to advance the CLARITY Act on September 15, 2026, left the CFTC to work within its current authorities, which focus on derivatives and leveraged trading rather than spot markets. In August 2026, CFTC Chairman Michael S. Selig directed staff to explore rules for a crypto asset market under the agency's existing authorities. The idea is to create a new market category specifically for crypto assets, potentially allowing both registered and unregistered exchanges to offer leveraged trading under CFTC oversight.
For crypto traders, the immediate impact is minimal, as the CFTC intends to write rules for leveraged and derivatives crypto trading regardless of Congressional action. For exchanges, a formal market category with defined oversight could provide a recognized path to offer leveraged products. However, this rulemaking is more fragile than one backed by statute and does not address spot trading, leaving a significant jurisdictional gap.
The next milestone is OIRA's review, which requires White House sign-off before the CFTC can proceed to a formal public stage. The release of the actual proposed text will be crucial, as it will detail how the agency defines a crypto asset market, who qualifies, and what leveraged trading would look like under its watch. Congress remains a wildcard, with the CLARITY Act's narrow 49-50 vote suggesting future legislative action could reshape the CFTC's regulatory efforts.