CFTC Seeks Public Input on Retail Crypto Trading Regulations
The Commodity Futures Trading Commission (CFTC) has taken a significant step toward regulating retail crypto trading in the U.S. On October 5, 2026, the agency published an advanced notice of proposed rulemaking (ANPRM) seeking public comment on establishing a regulatory framework for crypto asset transactions (CTXs). The 60-day comment period, which began upon publication in the Federal Register, aims to gather input on preventing abusive practices, providing contextual information on industry best practices, and codifying a subcategory of designated contract markets specifically for CTXs.
CFTC Chairman Michael S. Selig emphasized the importance of this initiative, stating it is 'a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world.' The notice highlights the need for federal oversight, as current state-level protections, such as money transmission licensure regimes and registrations with the Financial Crimes Enforcement Network, do not adequately safeguard retail customers from market manipulation and conflicts of interest.
The ANPRM follows a series of policy developments, including the President’s Working Group on Digital Asset Markets report in July 2025 and the CFTC’s Crypto Sprint in August 2025. It also builds on the agency’s joint efforts with the Securities and Exchange Commission (SEC), culminating in the Joint Crypto Asset Taxonomy issued in March 2026. The notice proposes Regulation CTX to clarify transactions involving crypto assets and defines actual delivery as the transfer of a crypto asset to a user’s external, non-custodial digital wallet within 28 days.
Chairman Selig described the regulatory landscape as a ladder, with different rungs representing various levels of exchange registration and oversight. The initial proposals aim to establish a framework for exchanges offering margined, leveraged, or financed crypto asset trading, allowing them to register either as a designated contract market or as a crypto asset market (CAM). A CAM would adhere to tailored regulations purpose-built for CTXs, ensuring customer protections and market integrity.