CFTC files new rulemaking to regulate crypto transactions and markets

The Commodity Futures Trading Commission isn’t waiting around for Congress anymore. On September 17, the agency submitted a proposed rulemaking titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” to the White House Office of Information and Regulatory Affairs, signaling its intent to build a crypto regulatory framework on its own terms. The timing is not coincidental. Two days earlier, the Senate blocked the CLARITY Act, the legislative attempt to establish a comprehensive digital asset regulatory structure, by a razor-thin 49-50 procedural vote. With the legislative path closed, at least for now, the CFTC decided to use the authority it already has. What the CFTC is proposing The core of the proposal revolves around creating a designated contract market framework specifically tailored for crypto assets. The CFTC appears to want something similar for crypto, potentially encompassing both registered and some non-registered exchanges for leveraged trading. CFTC Chair Michael S. Selig laid the groundwork for this in August when he directed staff to explore rules around crypto market structure. That earlier push included guidance on prediction markets and ...