CFTC Submits Crypto Market Regulation Proposal Amid Clarity Act Stalemate

The US Commodity Futures Trading Commission (CFTC) has submitted a proposal to regulate the crypto market to the White House Office of Management and Budget for review. The move comes after the Senate failed to pass the Clarity Act, which aimed to create a federal framework for crypto markets.

The CFTC's proposal is titled 'Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets' and will be reviewed by the White House before returning to the CFTC for a vote and public comment. The agency has signaled its intention to act under existing authority, with Chair Michael Selig stating that the CFTC was 'locked in and ready to ship' rules.

The SEC has also taken steps to provide clarity to the crypto industry, issuing an innovation exemption that gives qualifying platforms a five-year window to offer onchain trading of certain tokenized stocks without registering as securities exchanges. Additionally, the CFTC published a no-action letter allowing software providers to connect users to regulated derivatives markets without registering as introducing brokers.