CFTC Unveils National Crypto Oversight Plan After CLARITY Act Stalls

CFTC Chair Michael Selig on Monday outlined a proposed federal crypto regulatory framework that would let certain digital-asset firms opt into CFTC supervision instead of navigating a patchwork of U.S. state rules. Speaking at the Fordham Law Blockchain Regulatory Symposium, Selig said the agency is moving at President Donald Trump's direction and intends to advance crypto regulation with or without new legislation from Congress. In prepared remarks, Selig said the CFTC has issued an advance notice of proposed rulemaking for firms that offer retail crypto trading on a margined, leveraged, or financed basis. He referred to the initiative as CTX. Under the plan, the CFTC would create a new designated contract market category called a crypto asset market (CAM). Eligible exchanges could choose to register as either a traditional DCM or a CAM. Selig said the framework would provide a route for crypto asset exchanges to operate under consistent, nationwide CFTC oversight. Selig also said the agency would rely on the same statutory authorities the prior administration used when regulating primarily through enforcement. The proposal would not cover what Selig described as ordinary spot crypto exchanges, which are generally overseen under state money-transmission laws. The CFTC would still maintain authority to bring antifraud and antimanipulation actions involving spot trading in crypto assets such as Bitcoin. The CFTC's move follows the failure of U.S. senators to pass the Digital Asset Market Clarity (CLARITY) Act a few weeks ago. The bill had been expected to expand the CFTC's authority to supervise and enforce crypto rules. The Securities and Exchange Commission had already signaled a parallel path in August, when it released a proposed tailored securities-offering regime for crypto assets ahead of the unsuccessful CLARITY vote. That SEC proposal contributed to expectations that both agencies would push forward without Congress codifying the framework. Selig said Trump has promised to deliver a crypto asset regulatory market structure regardless of whether lawmakers act, and that regulators will use existing authorities to help fulfill that pledge. ProChain Capital's David Tawil said Monday that opponents of CLARITY may not have anticipated the executive branch's apparent readiness to proceed without legislative constraints. Separately, Friday marked SEC Commissioner Hester Peirce's final day at the agency after eight years. Her departure came shortly before an 18-month extension tied to her second term and leaves the SEC with two commissioners. Selig currently leads the CFTC as its sole commissioner and chair. A White House official said last week that Trump plans to nominate commissioners to both agencies in the near future. As of Monday, the administration had not announced replacements for Peirce or for the other six open commissioner seats.