The Commodity Futures Trading Commission is moving ahead with its own cryptocurrency market framework after Congress failed to advance a major digital asset bill.
The CFTC submitted a proposed rule covering crypto asset transactions and markets to the White House for review on Sept. 17. The filing moves the proposal into the federal review process and signals that the agency intends to use its existing authority while lawmakers remain divided.
The move comes shortly after the Senate failed to advance the CLARITY Act on Sept. 15. The procedural vote ended 50-49, falling short of the 60 votes needed to proceed. The legislation would have established a broader statutory framework for digital assets and given the CFTC a larger role in overseeing spot markets for qualifying digital commodities.
CFTC Moves Under Existing Authority
The proposal remains confidential during the initial review. The Office of Management and Budget’s regulatory review office can request changes before returning the measure to the CFTC.
CFTC Chairman Michael Selig previously directed staff to develop rules that could establish a crypto market structure without waiting for new legislation. The approach could expand the agency’s role over crypto trading venues and certain digital asset transactions.
However, the proposal still faces several procedural steps. After the White House review, the CFTC would need to vote on the proposal before publishing it for public comment.
What Comes Next for Crypto Regulation
The rulemaking could give U.S. crypto businesses a clearer regulatory pathway while Congress continues its debate over market structure legislation. It also could create questions about how far the CFTC can extend its authority under existing law.
The public will have an opportunity to comment if the proposal reaches the formal notice stage. The agency would then consider those comments before voting on any final rule.
For crypto exchanges, traders and investors, the development marks another shift in the U.S. regulatory landscape. Instead of waiting exclusively for Congress, federal agencies are increasingly using existing powers to address digital asset markets.
