CFTC Opens Public Consultation on Crypto Trading Rules
The U.S. Commodity Futures Trading Commission (CFTC) has launched a consultation seeking public input on two proposed crypto regulatory frameworks: Regulation CTX and Regulation CAM. The move, announced on Oct. 5, invites written comments within 60 days of the notice's publication in the Federal Register.
The consultation focuses on rules for leveraged, margined, or financed retail crypto transactions, known as crypto asset transactions (CTXs). Regulation CAM would establish a crypto-specific category within the agency's designated contract market registration system. CFTC Chair Michael Selig clarified that mandatory registration for all crypto exchanges would require congressional action.
Selig emphasized that the proposed framework offers a federal registration option for firms seeking a single federal market regulator. He highlighted the need for tailored rules to address gaps in crypto market structure, citing the FTX collapse as an example where customer funds remained secure in the CFTC-registered subsidiary but were misappropriated in the offshore and state-regulated entities.
The consultation also seeks views on preventing abusive practices and identifying crypto-specific information to help participants comply with CTX requirements. The initiative follows a Sept. 17 White House submission and the Senate's failed CLARITY Act vote, which aimed to divide digital-asset responsibilities between the SEC and CFTC.