CFTC Chair Mike Selig Says Crypto Is “Back Onshore” as US…

AI summary of the source article

CFTC Chairman Michael Selig announced that cryptocurrency innovation is returning to the U.S. as regulators advance initiatives to integrate digital assets into the domestic financial system. Following the Senate's failure to pass the Digital Asset Market Clarity Act (CLARITY Act), the CFTC proposed new rules on October 5 targeting leveraged, financed, and margined crypto transactions, as well as a federal registration framework for qualifying trading venues. In May, the agency also allowed a domestic exchange to list Bitcoin perpetual futures. While the SEC pursues parallel initiatives on custody and tokenized securities, the CFTC's limited statutory authority over spot markets means administrative rules cannot fully substitute for comprehensive congressional legislation.

Why it matters

The regulatory shift aims to bring high-volume crypto derivatives trading onshore from offshore platforms, offering U.S. firms regulated pathways for products like perpetual futures amid global competition.

Key facts

• The CFTC proposed rules on October 5 covering leveraged, financed, and margined cryptocurrency transactions and venue registration.
• The Senate failed to advance the Digital Asset Market Clarity Act (CLARITY Act), leaving the CFTC to rely on its existing commodity derivatives authority.
• In May, the CFTC permitted a registered domestic exchange to list a Bitcoin perpetual futures contract.