CFTC to push crypto regulation with or without Congress approval
US Commodity Futures Trading Commission (CFTC) Chair Michael Selig announced that the agency will proceed with crypto regulation under President Donald Trump’s direction, with or without legislative support from Congress. Speaking at the Fordham Law Blockchain Regulatory Symposium on Monday, Selig revealed proposals allowing crypto firms to operate under the CFTC’s oversight rather than navigating state-specific regulations. The CFTC has issued an advanced notice of proposed rulemaking for companies offering retail customers margined, leveraged, or financed crypto trading, labeling the regulation ‘CTX.’ Selig proposed a new category of designated contract market called a “crypto asset market” (CAM), enabling certain exchanges to register under this classification.
The proposed rules would not apply to “ordinary spot crypto exchanges,” which typically fall under state money transmission laws. However, the CFTC would retain authority to enforce anti-fraud and anti-manipulation regulations for spot trading of assets like Bitcoin (BTC). Selig’s announcement follows the Senate’s failure to pass the Digital Asset Market Clarity (CLARITY) Act, which aimed to grant the CFTC broader regulatory authority. The Securities and Exchange Commission (SEC) had already unveiled its own regulatory framework for crypto assets in August, signaling that both agencies plan to advance regulations independently of congressional legislation.
Selig emphasized that Trump is committed to establishing a crypto regulatory structure, leveraging existing statutory authorities if necessary. David Tawil of ProChain Capital noted that opponents of the CLARITY Act may not have anticipated the executive branch’s readiness to act without legislative constraints. As of Monday, both the SEC and CFTC remain understaffed, with the SEC set to operate with only two commissioners following Hester Peirce’s departure. A White House official indicated that Trump intends to nominate new commissioners for both agencies in the near future.