CFTC Sends Crypto Rules to White House After Senate Blocks CLARITY Act
The Commodity Futures Trading Commission (CFTC) has moved forward with its plans to regulate cryptocurrencies, sending a proposal to the White House for review. This comes after the Senate failed to pass the CLARITY Act, which aimed to provide clarity on digital asset market structure.
CFTC Chairman Michael Selig had previously directed staff to develop a set of rules using existing authority, in case Congress failed to pass legislation. The proposal designates certain firms and exchanges as 'crypto asset markets,' including those that offer leveraged or margined transactions.
The White House review process is a standard procedure for significant regulatory actions, but it does not affect the effectiveness of the proposed rules. A formal proposal will need to be published and comments gathered from the public before the CFTC can proceed with making a final rule.