CFTC Files Crypto Market Rules with White House Amid CLARITY Act Stalemate
The Commodity Futures Trading Commission (CFTC) has filed its crypto market-structure rulemaking with the Office of Information and Regulatory Affairs (OIRA), a step that comes after the CLARITY Act stalled in the Senate. According to CFTC Chair Mike Selig, the agency is 'locked in and ready to ship' rules for crypto markets using its existing statutory authority.
The OIRA review marks the beginning of a longer process. Once the Office of Management and Budget returns the draft, the CFTC would hold a commission vote, open a public comment period, and need a second commission vote before any rules could take effect. The text of the rulemaking has not been disclosed, leaving questions about which crypto assets will be covered, what exchanges must do to qualify, and what restrictions will apply.
Selig described in August how the package might set up a regime: current registrants and non-registrant crypto exchanges could be designated by the CFTC as a type of DCM known as a 'crypto asset market,' offering crypto asset trading on a leveraged or margined basis under 'purpose-fit rules' and CFTC oversight.