CFTC Submits Crypto Market Regulation Plan for White House Review
The US Commodity Futures Trading Commission (CFTC) has submitted a new regulatory initiative concerning crypto asset transactions and markets to the White House for review. Titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,” the proposal is at a preliminary stage of the rulemaking process. This move follows shortly after the Senate’s failure to advance the CLARITY Act, legislation intended to establish a federal regulatory framework for crypto markets. In response, both the CFTC and the SEC announced plans to proceed with regulations using their existing authorities.
Submission of Regulatory Documentation and Legislative Context
According to a filing with the Office of Information and Regulatory Affairs (OIRA), the document titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” was received on September 17 and is classified as being in the “prerule” stage — an early step in the rulemaking process during which regulations have not yet been formally proposed.
The filing does not disclose details of the proposed regulation but comes just days after the Senate failed to advance the CLARITY Act, legislation intended to establish a federal framework for regulating crypto markets.
CFTC and SEC Responses Following the CLARITY Act Vote
The Senate voted against advancing the CLARITY Act on September 15. The following day, CFTC Chair Michael Selig posted on the social platform X that the agency was “locked in and ready to ship” regulations for crypto markets, leveraging its existing statutory authority.
Similarly, SEC Chair Paul Atkins indicated the securities regulator would proceed with crypto oversight “with or without legislation.”
On September 16, both agencies acted concretely: the CFTC issued a no-action relief for providers of passive software, while the SEC announced temporary exemptions for certain platforms facilitating onchain trading of tokenized securities.
CFTC’s Initiative to Establish Regulation Without New Legislation
Prior to the Senate vote, the CFTC had already been exploring the possibility of regulating crypto markets using its current authority. At the CFTC Innovation Advisory Committee conference on August 20, Michael Selig stated the commission was prepared to create a crypto asset market regime if the CLARITY Act failed.
He indicated that CFTC staff were directed to explore rules enabling existing registrants and currently unregistered crypto exchanges to become a type of designated contract market called a “crypto asset market,” permitting leveraged or margined trading under CFTC oversight.
Market Reactions and Perspectives of Key Figures
Coinbase CEO Brian Armstrong expressed expectations that regulators would continue moving forward with clear rules after the Senate vote. In a September 15 post on X, he noted that both the SEC and CFTC have sufficient tools under existing authority to develop clear regulations and expected them to begin earnest work on the matter.
Armstrong emphasized that clarity in the crypto industry is forthcoming regardless of whether new legislation passes.
Why it matters
This news is significant because it highlights the determination of US regulatory agencies to advance cryptocurrency market rules even in the absence of new federal legislation. The failure of the CLARITY Act has not deterred the CFTC and SEC, which are prepared to use their existing statutory authority to regulate digital assets. Establishing a clear regulatory framework is crucial for the sustainable development of the market, participant protection, and enhancing investor and institutional confidence. Consequently, this news reflects a growing trend toward stronger crypto-sector oversight and signals steps towards a more structured approach to managing market risks and operations.
Prepared from the source material with AI-assisted editing and checked against the supplied facts.
Open original source ↗