CFTC Chair Names Six Cryptos as Digital Commodities

CFTC Chair Michael Selig has identified Bitcoin (BTC), Ether (ETH), Solana (SOL), Stellar (XLM), Tezos (XTZ), and XRP (XRP) as examples of digital commodities during a recent speech. His remarks, made on October 5 at the Fordham Law Blockchain Regulatory Symposium, reinforced existing SEC, CFTC interpretations rather than introducing new classifications. Selig emphasized that these assets are part of a broader taxonomy that includes other cryptocurrencies like Cardano, Chainlink, Dogecoin, Avalanche, and Litecoin.

The CFTC is exploring two regulatory frameworks: Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM). These proposals aim to oversee leveraged retail crypto trading, focusing on customer fund safeguards, anti-money laundering measures, and proof of reserves. Selig noted that the CFTC cannot mandate all crypto exchanges to register without congressional action, but the frameworks would provide a federal regulatory pathway for specific trading activities.

Selig also discussed potential clarifications for the 'actual delivery' exception, proposing that delivery to a customer’s external wallet within 28 days would satisfy this requirement. Additionally, the CFTC is considering policies for software developers who publish code without handling customer assets. The rulemaking process is ongoing, with written comments due within 60 days of the Federal Register publication, leaving room for adjustments before final regulations are established.