CFTC Steps In to Regulate Crypto Markets After Congress Deadlock
The Commodity Futures Trading Commission (CFTC) is taking steps to draft its own rules for crypto markets after a market structure bill failed to pass in Congress. The agency released an Advanced Notice of Proposed Rulemaking (ANPRM) seeking public feedback on two proposed regulations: Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM). These rules are still in the early stages, and no formal regulations have been enacted yet.
The ANPRM marks the beginning of the regulatory process, with a 60-day comment window for industry stakeholders to provide feedback. CFTC Chairman Michael Selig framed the initiative as a move to solidify America's position as the 'crypto capital of the world,' though the current step is merely a call for feedback.
The CFTC's primary concern is retail trading involving margin, leverage, or financing. The agency has outlined a three-tier market structure, with the second tier, exchanges offering leveraged trading, being the focus of the new rules. Spot trading and derivatives trading are not the main targets at this stage.
The CFTC's action comes after the Senate failed to pass the Clarity Act, which would have expanded the agency's role in regulating crypto markets. With Congress deadlocked, the CFTC is proceeding under existing authority through the Commodity Exchange Act.