CFTC Chairman Mike Selig introduced an advance notice of proposed rulemaking (ANPRM) on October 5, 2026, to establish new federal oversight for crypto asset markets. The proposed frameworks, Regulation CTX and Regulation CAM, aim to prevent fraud by implementing stricter standards for platforms rather than relying on retroactive enforcement.
The proposals specifically target leveraged and margined retail trading. Key safeguards include mandatory proof-of-reserves to verify asset holdings and the integration of futures commission merchants to oversee retail transactions. The agency also proposes anti-manipulation controls, with potential exemptions for transactions delivering assets to non-custodial wallets within 28 days.
Selig highlighted the November 2022 collapse of FTX, noting that operators misappropriated over $8 billion in customer funds. He emphasized that while the main exchange failed, assets held at FTX subsidiaries registered with the CFTC remained protected and segregated. The agency aims to apply similar regulatory rigor to the broader crypto sector.
The current initiative marks a shift from the previous policy of regulation by enforcement. Selig, who assumed his role on December 22, 2025, maintains that the existing Commodity Exchange Act provides a sufficient foundation for digital asset regulation. The CFTC has officially classified Bitcoin as a commodity since 2014.
