CFTC Proposes New Rules for Crypto Market Oversight

The Commodity Futures Trading Commission (CFTC) has proposed new rulemaking for crypto asset transactions and markets following the failure of the Clarity Act last month. The proposal, announced Monday, aims to establish a federal regulatory framework for crypto assets without requiring them to trade on CFTC-registered platforms. CFTC Chairman Michael S. Selig emphasized in a Wall Street Journal op-ed that the rules would provide a purpose-fit option for crypto exchanges willing to operate under a single federal regulatory scheme.

Selig stated that the CFTC and the Securities and Exchange Commission (SEC) have the authority to issue rules under existing laws. The proposed rules seek public comments on how to prevent abusive practices in crypto markets, provide industry-specific information, and codify a subcategory of designated contract market registration for crypto transactions.

In his op-ed, Selig criticized the prior administration for regulating the crypto industry through enforcement rather than issuing clear rules. He noted that the CFTC, under his leadership, will take steps to establish regulations designed to prevent fraudulent schemes like FTX.

Meanwhile, Bitcoin (BTC) rose 0.4% to ~$85.8K, Ethereum (ETH) increased 0.4% to ~$2.71K, Solana (SOL) slipped 0.8% to $120.17, and XRP (XRP) edged down 0.2% to $1.50.