CFTC launches effort to regulate crypto markets with public input

The US Commodity Futures Trading Commission (CFTC) has initiated the process of creating a comprehensive regulatory framework for crypto asset transactions. On Monday, the agency published an Advanced Notice of Proposed Rulemaking (ANPRM) seeking public comments on rules for retail commodity transactions involving crypto assets. The initiative aims to provide clarity, certainty, and consumer protections in the crypto markets.

CFTC Chairman Michael S. Selig emphasized the importance of preventing abusive practices and establishing a uniform national regulatory regime. The proposed framework seeks to address misconduct proactively rather than relying solely on enforcement after violations occur. Selig highlighted the need to prevent fraudulent schemes like FTX, stating that the agency will take necessary steps to establish regulations designed for prevention.

The CFTC is also considering the creation of a specific category of designated contract market registration called a “crypto asset market” for retail transactions. The agency is seeking views on regulatory requirements and industry best practices based on its experience since 2014. Market participants and stakeholders have 60 days from the publication of the notice in the Federal Register to submit written comments.