CFTC Chair Outlines New Crypto Rules and Digital Commodity Taxonomy

CFTC Chair Michael Selig has outlined proposed crypto rules that focus on retail transactions, wallet delivery, and a taxonomy identifying specific digital commodities. The proposed framework, Regulation CTX and Regulation CAM, aims to establish clearer guidelines for retail crypto transactions. According to Wu Blockchain, covered transactions would generally need to be intermediated by futures commission merchants (FCMs), ensuring they fall under an established intermediary structure.

The proposed rules also address customer asset segregation, capital requirements, anti-money laundering obligations, and proof-of-reserves requirements. Selig clarified that transferring crypto assets to a user's external, non-custodial wallet within 28 days would generally satisfy the 'actual delivery' exception, providing a clear timeframe for delivery qualification.

The CFTC is also considering a regulatory policy for software developers whose activities are limited to publishing software. Selig noted that the agency is exploring how to address developers who do not solicit orders, control execution, or hold customer assets, distinguishing them from entities involved in transaction execution or custody.

Selig cited the CFTC and SEC's joint crypto asset taxonomy, which lists Bitcoin (BTC), Ether (ETH), Solana (SOL), Stellar (XLM), Tezos (XTZ), and XRP as examples of 'digital commodities.' The classification is part of the agencies' broader effort to define and organize crypto assets within the regulatory framework.