CFTC Submits New Crypto Rules to White House Following Congressional Setback
CFTC moves forward with crypto regulations
The Commodity Futures Trading Commission (CFTC) has sent new crypto rules to the White House for review. The agency submitted a proposal titled "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets" on Thursday. The CFTC is a government agency that oversees derivatives, which are financial contracts that get their value from an underlying asset.
This move comes after the Clarity Act failed in the Senate. The Clarity Act was a major bill that would have created the first comprehensive federal rules for the digital asset industry. Because the bill did not pass, federal regulators are now moving forward using their own existing powers.
Main details of the regulatory filing
- The filing was sent to the Office of Information and Regulatory Affairs (OIRA).
- OIRA is a division that reviews federal rules before they are officially published.
- The move follows a failed procedural vote in the Senate on Tuesday regarding the Clarity Act.
- The SEC also recently released its own "innovation exemption" to allow for the trading of tokenized stocks on a blockchain, which is a digital ledger that records transactions.
Regulators utilize existing authorities
CFTC Chair Michael Selig previously stated that the agency would use its current powers to build a system for crypto markets if Congress did not act. In August, Selig said he directed staff to find ways for developers to offer protocols under existing rules.
The agency also recently issued a "no-action position" for software developers. This means the CFTC will not recommend legal action against these developers for failing to register as brokers, as long as they meet certain conditions.
Confirmed facts regarding the proposal
It is confirmed that the CFTC filed the specific regulation documents with the White House on Thursday. It is also confirmed that the Clarity Act failed to pass the Senate due to a procedural vote. Democratic negotiators cited ethics concerns and the influence of Donald Trump’s crypto ventures as reasons for their opposition.
Details that remain unclear
The specific rules inside the proposal have not been shared with the public. The CFTC declined to provide more details about what the rulemaking includes. It is not yet known when these regulations will be published or how they will specifically change the way crypto exchanges operate.
Why this matters for the crypto industry
This development shows that government agencies are not waiting for Congress to pass new laws to regulate crypto. Instead, they are trying to fit digital assets into the rules that already exist. This could lead to a new market structure where crypto exchanges are overseen by the CFTC as a specific type of market, potentially allowing for more types of advanced trading.
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.