CFTC Submits Crypto Regulation Proposal After Clarity Act Fails

The Commodity Futures Trading Commission (CFTC) has taken a significant step towards regulating crypto assets by submitting a proposal to the Office of Management and Budget. The proposed rule, which was submitted on September 17, aims to regulate crypto asset transactions and markets.

CFTC Chairman Michael Selig stated that if Congress didn't pass the Clarity Act, the CFTC would use its existing authorities to establish a crypto asset market regime. This move comes after the Clarity Act failed to advance in the Senate on Tuesday, September 15.

The CFTC's proposal is seen as a response to the lack of comprehensive federal market structure legislation for the crypto industry. Coinbase CEO Brian Armstrong stated that the cryptocurrency industry can't wait on Congress anymore and expects the SEC and CFTC to create clear rules under existing authority.