CFTC Proposes New Crypto Framework Urges Firms to Build Under US Rules

The Commodity Futures Trading Commission (CFTC) has unveiled a proposed framework for regulating retail crypto commodity transactions in the U.S. On Monday, the agency initiated a 60-day public comment period to gather industry and public feedback on the potential rules. Chairman Michael S. Selig emphasized the importance of clarity and consumer protections, urging crypto firms to operate under American regulations.

The proposal includes the creation of a specialized category called a “crypto asset market” for covered crypto transactions. The CFTC aims to address fraud proactively, learning from past incidents like the collapse of FTX. Selig highlighted the need for clear rules to foster trust and prevent future disasters.

Selig’s speech at Fordham’s blockchain regulatory symposium traced the evolution of crypto from Bitcoin to Ethereum, noting the shift from decentralized networks to centralized exchanges. He argued that proper regulation could usher in a “golden age” for the industry, providing a structured environment for startups and investors to thrive.

The CFTC’s proposal is not yet final, but the comment period marks a significant step toward establishing a federal crypto market regime. Selig’s message to the industry was clear: “Build here” under U.S. rules and standards to ensure a competitive and trustworthy market.