Selig Says Existing Law Can Support CFTC Rules for Crypto Markets

Commodity Futures Trading Commission Chairman Michael S. Selig said the agency can use existing law to shape rules for crypto markets, including rules involving Bitcoin (BTC), as it seeks public input on certain transactions and trading venues.

The CFTC’s Oct. 5 notice seeks comments on possible rules for “Regulation Crypto Asset Transactions” and “Regulation Crypto Asset Markets.” Comments are due within 60 days after the notice is published in the Federal Register. The notice itself does not establish binding requirements.

Selig said the proposed federal registration path would be optional for exchanges. Requiring every crypto exchange to register with the CFTC would require congressional action.

The agency’s approach builds on its treatment of Bitcoin as a commodity under the Commodity Exchange Act (CEA). A 2015 enforcement order applied that classification in a case involving Bitcoin options, following a 2014 CFTC staff paper that discussed Bitcoin under the statute.

The proposal focuses on retail commodity transactions involving crypto assets. It does not establish a comprehensive federal framework for all crypto markets or assets, and the agency may revise its approach after reviewing comments. The move continues the CFTC’s approach to crypto-market rules, which the agency has been developing under its existing authority.

The public-comment process follows a Sept. 15 Senate procedural vote that stalled the Digital Asset Market CLARITY Act. The vote left the broader debate over federal crypto market structure unresolved.