CFTC Pledges Clear Crypto Rules With or Without…

AI summary of the source article

Following the Senate's rejection of the CLARITY Act, the CFTC is advancing digital-asset oversight using its existing statutory powers under Section 2(c)(2)(D) of the Commodity Exchange Act. Chairman Michael Selig announced an advance notice of proposed rulemaking introducing Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM). The proposed framework creates an optional federal registration pathway for qualifying platforms offering leveraged, margined, or financed retail commodity transactions, requiring customer protections, proof of reserves, and intermediation by registered futures commission merchants. However, the narrower framework does not establish universal federal supervision over fully paid crypto spot markets without congressional action.

Why it matters

The proposal offers crypto trading platforms an optional path to federal oversight alongside state licensing, though gaps remain for crypto spot markets without congressional legislation.

Key facts

• CFTC Chairman Michael Selig announced an advance notice of proposed rulemaking introducing Regulation CTX and Regulation CAM.
• The proposed framework relies on Section 2(c)(2)(D) of the Commodity Exchange Act to create an optional federal registration pathway for qualifying exchanges.
• The initiative follows the Senate's rejection of the CLARITY Act, leaving the agency without comprehensive supervisory authority over crypto spot markets.