CFTC Moves Forward on Crypto Regulation Without Congress
US Commodity Futures Trading Commission (CFTC) Chair Michael Selig announced that the agency will push ahead with crypto regulation, with or without legislative support from Congress. Speaking at the Fordham Law Blockchain Regulatory Symposium, Selig revealed plans to offer crypto companies the option to operate under the CFTC’s oversight instead of navigating varying state regulations.
The CFTC has proposed a new regulatory framework, labeled ‘CTX,’ for companies facilitating retail customers to trade crypto assets on a margined, leveraged, or financed basis. Selig suggested the creation of a new category called a “crypto asset market” (CAM), allowing certain exchanges to register under this designation. These rules aim to provide uniform national oversight, leveraging existing statutory authorities.
The proposed rules would not apply to what Selig termed “ordinary spot crypto exchanges,” which typically fall under state money transmission laws. However, the CFTC would retain authority to enforce anti-fraud and anti-manipulation regulations for spot trading of assets like Bitcoin (BTC).
Selig’s announcement follows the recent failure of the US Senate to pass the Digital Asset Market Clarity (CLARITY) Act, which had sought to grant the CFTC broader regulatory powers. The Securities and Exchange Commission (SEC) had previously proposed its own regulatory framework for crypto assets in August, signaling that both agencies are moving forward independently of legislative action.
Selig emphasized that President Donald Trump has committed to delivering a regulatory structure for crypto assets, with or without legislative backing. The CFTC and SEC are currently understaffed, with the SEC losing Commissioner Hester Peirce and the CFTC led solely by Selig. The White House has indicated plans to nominate new commissioners for both agencies in the near future.