CFTC Proposes New Crypto Exchange Rules, Seeks Public Input

The Commodity Futures Trading Commission is proposing a new round of crypto market regulations and has opened a public comment period, according to a report by dailyhodl.com. The move follows the collapse of the Clarity Act in the Senate, where the bill failed in September to reach the 60 votes needed for a cloture motion to advance debate.

The proposed rules would set requirements for crypto exchanges registered with the CFTC. In a Wall Street Journal op-ed cited by dailyhodl.com, CFTC Chairman Michael Selig said the regulations would not carry the same weight as the Clarity Act, which would have largely placed digital assets under CFTC oversight, an agency many industry participants view as more favorable to crypto than the Securities and Exchange Commission.

Selig wrote that, unlike the Clarity Act, the new rules would not require crypto assets to trade on CFTC-registered platforms, noting the agency lacks authority to impose such a mandate without action from Congress. Instead, the proposal would create what he described as a purpose-fit option for crypto exchanges that want to operate under a single federal regulatory scheme.

According to the op-ed, exchanges that register under this framework would be allowed to offer retail customers margined, leveraged or financed trading, a feature not permitted on state-licensed exchanges. Selig said such platforms differ from standard spot-trading venues and fall squarely within the CFTC’s jurisdiction.

The CFTC is also seeking public comment on measures to prevent abusive practices in crypto asset markets, dailyhodl.com reported. The agency has not set a deadline mentioned in the report for the comment period to close.

Based on reporting by dailyhodl.com.