CFTC Submits Crypto Regulation Proposal, Bypassing Stalled Clarity Act

The Commodities and Futures Trading Commission (CFTC) has submitted a proposal for crypto regulation to the White House Office of Management and Budget, bypassing Congress's stalled Clarity Act.

No details are available about what is inside the proposal, but the CFTC released no information on which assets would be affected or how exchanges would qualify. The lack of clarity has led to speculation among market participants, who are left wondering when the rules will take effect.

The SEC's action on Thursday provides some relief, with an 'innovation exemption' that allows certain platforms to offer onchain trading of tokenized stocks without registering as securities exchanges for five years. However, this measure is tied to existing authority and does not assert new powers.

In a separate move, the CFTC issued a no-action letter allowing software providers to connect users with regulated derivatives markets without registering as introducing brokers. This relief has specific conditions that providers must meet, including prohibitions on holding customer assets or generating buy/sell signals.