CFTC Submits Proposed Crypto Rule to White House, Aiming for Clarity in Regulatory Environment
The Commodity Futures Trading Commission (CFTC) has taken significant action towards regulating the crypto market. The agency submitted its proposed rule, 'Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,' to the White House for review on September 17.
The rule is tied to the Dodd-Frank Wall Street Reform and Consumer Protection Act and aims to provide a clear framework for crypto exchanges to operate under CFTC oversight. Chair Michael Selig has emphasized the need for clarity in the regulatory environment, stating that if the CLARITY Act stalls due to Democrat obstruction, the CFTC will use its existing authorities to establish a regime for crypto asset markets.
The submission of the proposed rule is a required procedural step before it can move forward. The Office of Information and Regulatory Affairs (OIRA) reviews the rule, requests changes if necessary, and then clears it for public comment. Once cleared, the CFTC will publish the proposed rule and open a comment period.
The development is significant for XRP holders, as Ripple CEO Brad Garlinghouse has been actively involved in the regulatory process through his seat on the CFTC's Innovation Advisory Committee. A formal path for crypto assets to operate under U.S. law could bring much-needed clarity to the market and reduce regulatory uncertainty.