CFTC moves ahead with crypto market rules after Clarity Act failure

The Commodity Futures Trading Commission is moving ahead with its first dedicated rules for crypto markets after Congress failed to advance comprehensive market structure legislation. CFTC Chair Michael Selig said the agency is proposing two rulemakings, Regulation Crypto Asset Transactions, or Regulation CTX, and Regulation Crypto Asset Markets, or Regulation CAM, following the Senate’s failure to advance the Clarity Act. The proposals would establish requirements for CFTC-registered exchanges that offer crypto assets such as Bitcoin and Ether for trading. Unlike the Clarity Act, however, the rules would not require crypto assets to trade on CFTC-registered platforms. Selig said the agency does not have the authority to impose such a requirement without congressional action. Instead, the proposals are intended to create a purpose-built federal option for crypto exchanges that voluntarily choose to operate under CFTC oversight. Those platforms could offer retail customers margined, leveraged or financed crypto trading, distinguishing them from ordinary spot exchanges and bringing them more clearly within the CFTC’s existing jurisdiction. The move follows a joint interpretation from...