CFTC Pushes Crypto Market Rules After CLARITY Act Stalls

The U.S. Commodity Futures Trading Commission (CFTC) is moving forward with its own crypto market regulatory framework after the Senate failed to advance the CLARITY Act earlier this week.

The CFTC submitted a proposal titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” to the White House Office of Management and Budget (OMB) on September 17. The proposal is currently under review, according to federal regulatory records.

Specific details have not yet been released, leaving questions about which digital assets would fall under the framework, what requirements crypto exchanges could face and how broadly the CFTC intends to interpret its existing authority.

Following OMB review, the proposal would return to the CFTC, where commissioners could vote to release it for public comment. Another commission vote would generally be required before final rules take effect.

The move comes as U.S. financial regulators increasingly rely on existing authority to establish clearer crypto rules. The SEC and CFTC have already been working through their joint Project Crypto initiative to harmonize federal oversight of digital asset markets.

CFTC Chairman Michael Selig signaled that the agency intends to continue its regulatory push despite the CLARITY Act setback, saying after the Senate vote that the commission was prepared to advance rules covering the emerging financial sector.

The CFTC has also expanded regulatory relief for technology providers connecting users with regulated derivatives markets. On September 17, the agency issued a no-action position allowing qualifying passive software providers to facilitate trading with registered futures commission merchants, introducing brokers and designated contract markets without registering as introducing brokers themselves.

The relief can cover software, including crypto wallet interfaces, that enables users to view markets and submit orders directly to regulated firms. However, providers must satisfy specified conditions and cannot perform activities that would push them beyond the scope of the relief.

The latest actions show the CFTC continuing to develop a U.S. crypto regulatory framework through its existing powers while broader digital asset market structure legislation remains unresolved in Congress.