CFTC crypto market regulation enters White House review

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The US Commodity Futures Trading Commission has submitted a new regulatory action covering crypto asset transactions and markets for White House review, as the agency moves forward with its approach to overseeing the digital asset sector.

According to a filing with the Office of Information and Regulatory Affairs, the action, titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,” was received on Sept. 17 and is listed at the “prerule” stage. The designation indicates the action is at an early stage of the rulemaking process and has not yet been formally proposed.

The filing does not disclose details of the planned regulation, but comes days after the Senate failed to advance the CLARITY Act, legislation aimed at establishing a federal regulatory framework for crypto markets.

Source: Office of Information and Regulatory Affairs

A day after the Sept. 15 vote, CFTC Chair Michael Selig posted on X that the agency was “locked in and ready to ship” rules for crypto markets using its existing statutory authority, while SEC Chair Paul Atkins similarly said the securities regulator would move ahead “with or without legislation.”

Both agencies took action the following day. The CFTC issued a no-action position for providers of passive software, while the SEC announced temporary exemptions for certain platforms facilitating onchain trading of tokenized securities.

Source: SEC

CFTC and SEC move ahead without new legislation

The CFTC had been exploring the possibility of advancing crypto rules without new legislation before the Senate vote this week. In remarks at the CFTC’s Innovation Advisory Committee conference on Aug. 20, Selig said the agency was prepared to use its existing authority to establish a crypto asset market regime if the CLARITY Act stalled.

Selig added that he had directed CFTC staff to explore rules that could allow existing registrants and currently unregistered crypto exchanges to become a type of designated contract market called a “crypto asset market,” where leveraged or margined crypto trading could be offered under CFTC oversight.

Coinbase CEO Brian Armstrong also said he expected regulators to move ahead after the vote. In a Sept. 15 post on X, he wrote that the SEC and CFTC had “the tools they need to create clear rules under existing authority” and that he expected them to begin working on the issue “in earnest.”

“So clarity is coming to crypto regardless,” Armstrong wrote.

Source: Brian Armstrong

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