The Commodity Futures Trading Commission (CFTC) has issued an advance notice of proposed rulemaking to establish federal regulatory frameworks for crypto exchanges. This initiative follows the failure of the Clarity Act in the Senate last month, which aimed to define federal oversight for digital assets.
The proposal introduces two primary frameworks: Regulation CTX and Regulation CAM. Regulation CTX focuses on retail commodity transactions involving leverage or margin, utilizing the Dodd-Frank Act standards. It defines actual delivery as a key regulatory threshold, potentially requiring customers to maintain control of their private keys.
Regulation CAM proposes a new registration category for crypto asset markets, modeled after existing frameworks for futures exchanges. Under this rule, transactions would typically involve futures commission merchants subject to anti-money laundering protocols. The agency is also considering mandates for proof-of-reserves and measures to prevent market manipulation.
The CFTC is currently accepting public comments for 60 days following the publication of the notice in the Federal Register. Chairman Michael Selig stated that the framework aims to prevent fraudulent activities rather than relying solely on post-facto prosecution. The agency submitted the proposal to the White House in September.
This move signals a shift from the agency's previous enforcement-heavy strategy. While the CFTC pursues these rules, the Securities and Exchange Commission is simultaneously advancing its own regulatory agenda, including a proposal for tokenized stocks, despite the lack of comprehensive congressional legislation.
