CFTC Proposes New Rules for Crypto Markets Following Clarity Act Setback

The Commodity Futures Trading Commission (CFTC) is moving forward with its first set of dedicated regulations for the cryptocurrency market, following the Senate's failure to pass the Clarity Act. CFTC Chair Michael Selig announced the proposals, named Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM), which aim to establish a voluntary federal framework for exchanges dealing in cryptocurrencies like Bitcoin and Ether.

These proposed regulations are designed for CFTC-registered exchanges and would allow them to offer margined, leveraged, or financed crypto trading, distinguishing them from standard spot exchanges. However, unlike the Clarity Act, the new rules do not mandate that crypto assets must be traded on CFTC-registered platforms, as the agency lacks the authority to impose such requirements without congressional action.

Selig emphasized that this initiative marks a departure from the previous administration's enforcement-heavy approach, which he argued created uncertainty and drove some businesses offshore. He cited the collapse of FTX as a cautionary tale, highlighting the need for federal market rules that cover customer asset protection and orderly trading.

The CFTC's proposals come at a time when the agency is seeking to clarify its jurisdiction over a broad range of crypto assets, which it has determined to be non-securities. Despite the limitations of its authority without new legislation, Selig stated that the CFTC intends to utilize its existing powers to fill gaps in the crypto market structure and develop clearer rules for market participants.

CFTC Proposes New Rules for Crypto Markets

The U.S. Commodity Futures Trading Commission (CFTC) has announced new rules aimed at regulating digital asset transactions and markets. The proposed rules would enable U.S. crypto exchanges to opt into a federal regulatory framework.

Despite the recent setback of the Clarity Act, the CFTC and the Securities and Exchange Commission (SEC) are moving forward with their regulatory proposals. CFTC Chairman Mike Selig emphasized the importance of these actions, stating that they are crucial for maintaining America's position as the leading hub for cryptocurrency.

If these rules are approved, crypto exchanges that offer leveraged trades will be able to register with the CFTC. The Clarity Act aimed to clarify the regulatory landscape by distinguishing between securities, commodities, and stablecoins, but it faced challenges this year due to concerns from the banking lobby and ethical considerations raised by some lawmakers.

Chairman Selig, who previously served as chief counsel at the SEC’s Crypto Task Force, indicated that the CFTC is preparing for a transition to markets that operate continuously and on-chain. The SEC has also been active, having approved tokenized stocks trading in September and proposed a framework for crypto asset offerings in August.

Public comments on the CFTC’s preliminary rulemaking notice will be accepted for 60 days following its publication in the Federal Register. After reviewing the feedback, the CFTC will determine whether to issue a formal proposed rule, which will undergo another comment period before any final rule is established.

CFTC Proposes New Rules for Crypto Markets Following Clarity Act Setback

On October 5, 2026, CFTC Chairman Michael S. Selig stated that the Commodity Exchange Act (CEA) is sufficient for regulating Bitcoin and other cryptocurrencies. He emphasized that the CEA's broad definition of commodities encompasses digital assets.

The CFTC announced an advance notice of proposed rulemaking for two new regulations: Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM), aimed at enhancing federal oversight of leveraged digital asset trading platforms.

These proposals include creating a new registration category for "crypto asset markets" and implementing safeguards such as proof-of-reserves requirements and measures against market manipulation.

The CFTC's move follows the Senate's failed attempt to advance the Digital Asset Market CLARITY Act, which was defeated by a narrow 49-50 vote. This setback prompted the CFTC to utilize its authority under the existing CEA.

While the proposed regulations signal a clearer path for leveraged crypto trading venues, they remain in the early stages and are subject to public comment and potential changes.