CFTC Proposes Crypto Exchange Category Amid Market Turbulence
The US Commodity Futures Trading Commission (CFTC) has submitted a two-part crypto regulation proposal to the White House Office of Information and Regulatory Affairs (OIRA). The proposal, filed under RIN 3038-AF80, consists of Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets. This move aims to introduce a new category of exchange called 'crypto asset markets' that would allow spot trading of digital commodities like BTC and XRP under CFTC oversight.
OIRA has up to 99 days to review the proposal before it goes back to the Commission for a vote. The final rule is unlikely to take effect until late 2027, after two 60-day public comment periods.
This development comes amidst other recent actions by the CFTC and SEC to guide the crypto ecosystem. The CFTC has also announced an exception for certain software providers from broker classification under specific conditions, while the SEC introduced a five-year 'Innovation Exemption' rule for on-chain trading of tokenized stocks.
Despite market headwinds, Bitcoin has defied expectations and revisited the $80,000 mark. The overall crypto market cap has also risen 5.11% to $2.76 trillion.