CFTC to advance crypto rules regardless of Congress

The CFTC is set to advance its own crypto market rules, including a new framework for exchanges, regardless of Congress, aiming for regulatory clarity and consumer protection.

The Commodity Futures Trading Commission (CFTC) is preparing to introduce its own crypto market structure rules, regardless of whether Congress passes the CLARITY Act. CFTC Chairman Michael Selig stated that the agency has rule proposals ready to advance, aiming to deliver certainty, clarity, and consumer protection in digital asset markets. The CFTC is considering a tailored framework for designated contract markets (DCMs), specifically for crypto exchanges and leveraged trading. This would bring both registered and unregistered exchanges under CFTC oversight. Additionally, the agency is developing rules for on-chain finance, AI compute, and prediction markets. Selig emphasized the importance of a single federal framework over a state-by-state approach to reduce operational costs and legal risks for trading platforms. The CFTC is also collaborating with the SEC through Project Crypto to create an asset classification system. The agency’s proactive stance signals its readiness to act under existing authority to ensure market integrity and investor protection, even if the CLARITY Act does not pass.