CFTC Proposes New Crypto Rules
The Commodity Futures Trading Commission is proposing a new round of crypto market regulations following the defeat of the Clarity Act in the Senate, according to Daily Hodl. The proposed framework aims to establish specific requirements for CFTC-registered digital asset exchanges, addressing ways to prevent abusive practices within the sector.
CFTC Chairman Michael Selig clarified in a recent opinion editorial that the new rules lack the broad mandate of the stalled legislation. Without direct congressional action, the regulator cannot mandate that all digital assets trade exclusively on CFTC-registered venues. However, the framework provides a purpose-fit option for crypto-asset exchanges wishing to operate under a unified federal market regulatory scheme.
Unlike ordinary spot-trading venues or state-licensed platforms, participating exchanges would be permitted to allow retail customers to trade on a margined, leveraged, or financed basis. Such structured trading platforms fall squarely within the existing regulatory jurisdiction of the commission.
The regulatory push follows the failure of the Clarity Act in September, when the bill fell short of the necessary sixty-vote threshold on a cloture motion in the Senate. Industry stakeholders previously viewed the Clarity Act as a favorable pathway to place digital assets primarily under the purview of the CFTC rather than other financial regulators.
The agency is now formally inviting public comment on the proposed regulatory measures, focusing on market integrity and protections against abusive practices in crypto asset trading.
Based on reporting by dailyhodl.com.
