CFTC Seeks Public Input on National Crypto Trading Rules

The U.S. Commodity Futures Trading Commission (CFTC) has launched a consultation to create a national regulatory framework for crypto trading. In a notice published on Monday, the CFTC sought public input on rules for retail commodity transactions in crypto assets (CTXs). The goal is to establish a comprehensive regulatory framework that includes measures to prevent abusive practices and standardize industry best practices.

The consultation also proposes a registration category for crypto asset markets. The CFTC noted that the current lack of specific rules for cryptoassets and blockchain technologies has led to market uncertainty, with retail investors relying on state-level protections designed for traditional payments systems. The fragmented regulatory landscape has been described as duplicative, inefficient, and incompatible with the needs of national and international crypto asset exchanges.

The comment period for the consultation will remain open for 60 days. The CFTC plans to use the feedback received to inform potential rulemaking. CFTC chairman Michael Selig emphasized that the commission will take necessary steps to establish regulations aimed at preventing fraudulent schemes, citing the recent FTX collapse as an example.