CFTC sends crypto market rule proposal to White House for review
CFTC submits crypto market proposal to the White House
The Commodity Futures Trading Commission (CFTC), the main U.S. regulator for derivatives markets, submitted a new crypto market proposal to the White House Office of Management and Budget (OMB) on Thursday.
The move comes after the Senate failed to pass the Clarity Act, a bill meant to set clearer rules for crypto markets, earlier in the week. The CFTC is now pressing ahead with rules under its existing authority instead of waiting for Congress.
What the CFTC did this week
- The CFTC sent a crypto market proposal to the OMB for review. The details were not disclosed.
- On Friday, the CFTC also published a no-action letter, a letter saying it will not pursue enforcement against qualifying firms, that lets certain passive software providers connect users to regulated derivatives markets without registering as introducing brokers.
- The letters and proposal follow the SEC's announcement on Thursday of an "innovation exemption" giving qualifying platforms a five-year path to offer trading of certain tokenized stocks without registering as securities exchanges.
- Both the CFTC and the SEC have said they will keep working together to give the crypto industry clearer rules under their existing authority after the Clarity Act failed to pass.
What happens next with the proposal
The known path for the draft rule has several steps. Once the OMB finishes its review, the proposal returns to the CFTC for a vote and a public comment period. It would then need another vote before it can become effective.
What CFTC chair Mike Selig said
CFTC chair Mike Selig signaled the agency's intent in a post on X following a vote on Wednesday.
"The CFTC is locked in and ready to ship its rules for the new frontier of finance," Selig wrote.
CFTC gives software providers a path into derivatives markets
The no-action letter published Friday covers passive software that lets users view markets and submit orders directly to registered firms, including through crypto wallets.
Providers can market specific contracts and receive transaction-based fees. However, they cannot hold customer assets, generate buy or sell signals, or control how orders are routed or executed.
The relief comes with conditions, including risk disclosures, recordkeeping and compliance with marketing rules. It stays in place until the CFTC adopts rules or guidance addressing registration requirements for software developers.
SEC opens a five-year path for tokenized stocks
On the same day the CFTC submitted its proposal, the SEC issued its "innovation exemption." It gives qualifying platforms a five-year window to offer onchain trading of certain tokenized stocks, meaning shares represented on a blockchain, without registering as securities exchanges.
What is still unclear
The CFTC has not released the text of its proposal. It is unclear which crypto assets the rules would cover, what exchanges would need to do to qualify, what restrictions would apply, or how far the CFTC believes its authority extends.
Why it matters
With Congress stalled on the Clarity Act, the CFTC and SEC are moving separately to build crypto rules using the powers they already have. For crypto firms, that means the next wave of market structure rules is likely to come from regulators rather than legislation, at least in the near term.
Sources
Newisty Editorial Team covers technology, cryptocurrency, digital products, online platforms, developer tools and the wider digital economy. Our content is researched from official sources, company announcements, public documentation, market data and other primary or reputable sources. Articles are reviewed and edited before publication for clarity, accuracy and useful context.