CFTC Sends Crypto Proposal to White House Amid Legislative Gridlock

The Commodity Futures Trading Commission (CFTC) has sent its proposal for regulating crypto markets to the White House for review. This move comes after the Senate failed to advance legislation that would give the agency a more explicit role in U.S. crypto markets.

The proposal, which is currently at the prerule stage, focuses on the CFTC's existing authority over derivatives and spot commodity markets. The Commission has not yet publicly disclosed the contents of the proposal, but it is expected to clarify whether the CFTC intends to adapt existing rules or interpret its current authority more broadly.

The filing, which carries the title 'Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,' was received by the Office of Information and Regulatory Affairs (OIRA) on September 17. The review process is an early checkpoint in the administrative path for digital-asset regulation, but it does not guarantee final approval.

Without a clear legislative framework from Congress, the CFTC must ground its regulations in existing law. This distinction could determine which activities the agency believes are already within its authority to regulate, and which businesses may need to change their operations as a result.