CFTC Unveils New Crypto Regulatory Framework Amid Legislative Standoff
US Commodity Futures Trading Commission (CFTC) Chair Michael Selig announced plans to advance crypto regulation, with or without congressional legislation. Speaking at the Fordham Law Blockchain Regulatory Symposium, Selig proposed a framework allowing crypto companies to operate under CFTC oversight rather than state regulations. The proposed rules, dubbed ‘CTX,’ would create a new category called a “crypto asset market” (CAM), enabling exchanges to register under this designation. Selig emphasized that these rules would provide uniform national oversight, contrasting with the current patchwork of state regulations.
The proposed regulations would not cover “ordinary spot crypto exchanges,” which are typically regulated under state money transmission laws. However, the CFTC would retain authority to enforce anti-fraud and anti-manipulation rules for spot trading platforms. Selig’s announcement follows the failure of the US Senate to pass the Digital Asset Market Clarity (CLARITY) Act, which aimed to grant the CFTC broader regulatory authority over crypto assets.
Selig’s proposals come as both the CFTC and the Securities and Exchange Commission (SEC) move forward with crypto regulation despite legislative gridlock. The SEC had previously announced its own regulatory framework for crypto assets in August. Selig noted that President Donald Trump has committed to delivering a crypto regulatory structure with or without legislative support, leveraging existing statutory authorities.
David Tawil of ProChain Capital commented that opponents of the CLARITY Act may not have anticipated the executive branch’s readiness to act independently of legislative constraints. Both the CFTC and SEC are currently understaffed, with the SEC losing Commissioner Hester Peirce after her final day on Friday. Selig remains the sole commissioner and chair of the CFTC, while the White House has indicated plans to nominate new commissioners for both agencies in the near future.