CFTC Pushes Ahead With Crypto Rules Despite Congressional Deadlock

The U.S. Commodity Futures Trading Commission (CFTC) is moving forward with a structured regulatory approach for crypto exchanges, regardless of whether Congress passes new legislation. CFTC Chair Michael Selig stated the agency will act “with or without legislation,” highlighting proposals to provide certain crypto platforms a clearer pathway to operate under CFTC oversight. This push comes after the U.S. Senate failed to advance the Digital Asset Market Clarity (CLARITY) Act, leaving regulatory clarity in question.

Selig outlined a framework designed to reduce reliance on inconsistent state-by-state rules for some crypto trading products. The CFTC plans to create a new category called a “crypto asset market” (CAM), allowing eligible exchanges to register as a designated contract market under a uniform framework. The proposed rules would target firms offering retail customers the ability to trade crypto assets on a margined, leveraged, or financed basis, which Selig referred to as “CTX.”

However, the new CAM approach would not cover “ordinary spot” crypto exchanges, which Selig noted are generally governed under state money transmission laws. Despite this, the CFTC would retain authority to enforce anti-fraud and anti-manipulation requirements for spot markets. The timing of these regulatory efforts is shaped by the recent legislative setback and the need for agencies to build a coherent framework without new statutory mandates.

The CFTC’s ability to implement these changes may depend on staffing. With limited commissioners currently leading both the SEC and CFTC, there are concerns about slower rulemaking and delayed enforcement. Selig’s comments suggest the CFTC will use advanced notices of proposed rulemaking and existing legal authorities to shape market structures, even amid leadership and capacity constraints.