Speaking on CNBC, CFTC Chairman Michael Selig said regulators are moving to issue formal rules for $BTC after Congress failed to pass the Clarity Act. With the SEC advancing a separate effort in parallel, the CFTC is developing an opt-in framework aimed at protecting users through anti-fraud safeguards and the segregation of exchange, brokerage, and clearing functions.

The U.S. Commodity Futures Trading Commission (CFTC) has released an Advanced Notice of Proposed Rulemaking (ANPRM) aimed at creating a market structure for spot cryptocurrency trading by relying on the agency's existing statutory authority, according to ME News. The notice was issued on Oct. 6 (UTC+8). Under the concept outlined in the ANPRM, the CFTC would build a framework on top of current registrations for designated contract markets (DCMs), derivatives clearing organizations (DCOs) and futures commission merchants (FCMs), while introducing a new classification dubbed a "Crypto Asset Market." A central difference from the Clarity Act is the CFTC's focus on a voluntary federal exchange-registration route. Spot platforms that do not offer leverage could choose to remain outside the framework and continue operating under state money transmitter licenses. Former CFTC Chair Christopher Giancarlo said the proposal would give exchanges a "clear, voluntary, single federal rulebook path" for situations where customers trade using borrowed funds. He also argued the agency is acting within authority granted by Congress in 2010, citing court decisions that have recognized assets such as Bitcoin as commodities. Several lawyers characterized the ANPRM as a "clever" or "creative" reading of Section 2(c)(2)(D) of the Commodity Exchange Act. That interpretation could extend to retail spot crypto transactions that involve leverage, margin or financing, even if customers do not ultimately use leverage. The notice also discusses the meaning of "actual delivery" under Section 2(c)(2)(D), signaling an approach that looks to whether customers own or control the assets, rather than relying solely on book-entry records held in omnibus accounts. The proposal leaves major questions open on customer asset protection in bankruptcy. Public comments are due within 60 days after publication in the Federal Register. (Source: ChainCatcher)

The U.S. Commodity Futures Trading Commission (CFTC) has issued an Advanced Notice of Proposed Rulemaking (ANPRM) outlining how it could use existing authority to build a market-structure framework for spot trading in crypto assets, according to crypto journalist Eleanor Terrett. The concept would lean on current registration regimes for Designated Contract Markets (DCMs), Derivatives Clearing Organizations (DCOs) and Futures Commission Merchants (FCMs), while introducing a new category dubbed "crypto asset markets." One notable difference from the Clarity Act is the CFTC's exploration of a voluntary federal exchange registration route. Under the approach described, spot venues that do not offer leverage could choose to remain outside the framework and continue operating under state money transmitter licenses. Former CFTC Chairman Christopher Giancarlo said the proposal would give exchanges a "clear, voluntary, single federal rulebook path" when customers trade using borrowed funds. He added that the agency is acting within authority Congress provided in 2010, citing court decisions that have treated assets such as Bitcoin as commodities. Several lawyers described the ANPRM as a "clever" or "creative" reading of Section 2(c)(2)(D) of the Commodity Exchange Act. The interpretation could reach retail spot crypto transactions involving leverage, margin or other financing arrangements, even if a customer does not ultimately use leverage. The ANPRM also discusses what counts as "actual delivery" under Section 2(c)(2)(D), signaling a focus on whether customers own or control the assets rather than relying only on book-entry records maintained in omnibus accounts. At the same time, the document leaves open major questions about customer asset protections in bankruptcy. Public comments are due within 60 days after the ANPRM is published in the Federal Register.

Decrypt: The CFTC's latest move signals a clearer runway for crypto markets. Altcoin performance was led by ZRO, while ZCAT staged a notable rebound. This edition also features a closer look at Orbio, unpacking what's driving the project and what it could mean for the broader market.

CFTC Chairman Michael Selig drew attention for wearing an orange tie after being asked, "You've got the #Bitcoin tie on. You're a Bitcoiner, by the way?" Selig said the agency had released its proposed crypto rule the day before and he wanted to mark the moment. "I've got to celebrate with Satoshi Nakamoto's favorite color, which is orange," he replied. In separate remarks, Selig criticized lawmakers for inaction. "I am absolutely disappointed in Congress..." he said, adding that the CFTC will rely on its existing statutory authority. "But we've got statutory authority and we're going to use it." Selig also pointed to the SEC's parallel effort, noting the agency has issued a proposed regulatory approach for crypto assets, including a framework for distributing crypto assets. Link:

UPDATE: Rain has filed an application for a U.S. national trust bank charter, aiming to offer digital-asset custody services and capabilities related to stablecoin reserves and issuance.

Morning Minute: The U.S. Commodity Futures Trading Commission (CFTC) has outlined plans to bring cryptocurrency exchanges under a clearer regulatory framework.

CryptoNews.com (Oct. 6) — The U.S. Commodity Futures Trading Commission (CFTC) is seeking public feedback on proposed regulations aimed at the cryptocurrency market, including a new framework for leveraged crypto asset trading. Under the proposal, retail leveraged cryptocurrency transactions would be required to route through futures commission merchants (FCMs). The CFTC has also signaled coordinated rulemaking efforts with the U.S. Securities and Exchange Commission (SEC), as both agencies advance broader crypto regulatory proposals. In related developments, CFTC coverage noted that CME opposes dismissing a lawsuit involving cryptocurrency perpetual futures. Separately, the Ethereum Sepolia network is scheduled to undergo a hard fork upgrade on Oct. 6. Market commentary from Fundstrat's Tom Lee said the resilience in cryptocurrencies and technology stocks reflects expectations that the Federal Reserve may shift toward a more accommodative policy stance. Elsewhere, U.S. community banks have filed suit against federal banking regulators seeking to overturn a crypto trust charter. On the market-technical front, indicators point to a potential shift in Bitcoin, while Ethereum continues preparations for the Glamsterdam testnet upgrade.

Russia's Central Bank on Tuesday opened an application portal for licenses to operate regulated cryptocurrency exchanges, marking a significant move to place the country's digital-asset markets under formal regulatory supervision.