Hassan Maishera
TL;DR
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The CFTC has submitted proposed cryptocurrency market regulations to the White House for review.
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The proposal covers crypto-asset transactions and the regulation of digital-asset markets.
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The agency is moving under its existing authority after the CLARITY Act failed to advance in the Senate.
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The CFTC is exploring a framework that could let registered and unregistered exchanges become regulated crypto-asset markets
The Commodity Futures Trading Commission has sent a proposed cryptocurrency rulemaking package to the White House, signaling that the agency intends to move forward with digital-asset regulation despite the failure of broader legislation in Congress.
According to a Bloomberg report, on Thursday, the CFTC submitted a proposal titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” to the Office of Information and Regulatory Affairs.
OIRA, a division of the Office of Management and Budget, reviews significant federal regulations before agencies publish them. The filing represents an important procedural step, although the proposal’s specific provisions remain undisclosed.
The CFTC declined to provide additional details about the rules.
Regulators Move After CLARITY Act Fails
Federal financial agencies are increasingly relying on their existing powers after the Senate failed to advance the CLARITY Act during a procedural vote on Tuesday.
The legislation would have established the first comprehensive federal framework for the U.S. digital-asset industry, including clearer divisions of responsibility between the CFTC and the Securities and Exchange Commission (SEC).
Leading Democratic negotiators cited ethics concerns when opposing the measure. Lawmakers have raised questions about President Donald Trump’s cryptocurrency interests, including his family’s involvement in World Liberty Financial and his memecoin.
With the bill stalled, regulators are attempting to address parts of the crypto market through agency-level exemptions, guidance and rulemaking.
CFTC Chair Michael Selig previously said the agency would use its current statutory authority to begin creating a regulatory framework for crypto markets if Congress failed to pass the CLARITY Act.
In August, Selig directed agency staff to examine how software developers could offer decentralized protocols while complying with commodities regulations.
The CFTC has also considered creating a formal “crypto asset market” designation within its existing designated contract market framework.
Under that approach, current CFTC registrants and cryptocurrency exchanges that are not yet registered could apply for designation as crypto-asset markets.
Approved platforms could offer leveraged or margined digital-asset trading under rules tailored to the sector.
The proposal could bring more crypto exchanges under direct federal supervision without waiting for Congress to enact a new market-structure law.
SEC and CFTC Accelerate Crypto Measures
The filing came on the same day that the SEC released its long-awaited “Innovation Exemption” for qualifying tokenized securities venues.
That exemption provides temporary regulatory relief for platforms offering onchain trading of tokenized stocks under specified conditions.
The CFTC also issued a no-action position covering certain software developers. The agency said it would not recommend enforcement action against qualifying developers for failing to register as introducing brokers, provided they meet the stated requirements.
Together, the actions indicate that both agencies are accelerating efforts to create regulatory pathways for digital assets following the CLARITY Act’s Senate defeat.
However, agency-led policies may face legal challenges or reversal by future administrations without legislation establishing a durable statutory framework.
