The U.S. Commodity Futures Trading Commission has unveiled its first package of regulatory standards for cryptocurrency markets. CFTC Chair Michael Selig said the proposals begin the process of building a clearer federal framework after Congress failed to advance the CLARITY Act.

The agency proposed two sets of rules: Regulation CTX for crypto-asset transactions and Regulation CAM for crypto-asset markets. They would establish requirements for CFTC-registered exchanges that offer crypto assets for trading.

Retail margin and leverage

Selig said the rules would create a tailored regulatory regime for crypto exchanges seeking to operate under a single federal framework. Registered platforms would be allowed to offer retail clients trading through margin, leverage and financing.

Such venues differ from standard spot platforms and fall directly under the CFTC’s jurisdiction, Selig said.

The proposals would not require crypto assets to trade exclusively on CFTC-registered platforms. Selig said the agency lacks the authority to impose such a requirement without corresponding legislation from Congress.

He said the CFTC and the U.S. Securities and Exchange Commission largely relied on regulation through enforcement under the previous administration instead of establishing new rules for cryptocurrency markets. In his view, that approach contributed to some crypto companies moving operations outside the United States.

Selig cited FTX, which was registered in the Bahamas, as an example. He also said FTX, BlockFi and Voyager Digital operated in the United States through subsidiaries that held state money transmitter licenses.

Customer assets that FTX held through its CFTC-registered subsidiary remained segregated and protected, Selig said. He argued that the experience demonstrated the need for federal rules that support innovation while protecting market participants.

CFTC and SEC interpretation

The proposals followed a joint interpretation published by the CFTC and SEC in early 2026. That interpretation determined that several crypto assets, including bitcoin and Ethereum, are not securities and fall under the CFTC’s regulatory authority.

Selig said the new standards should account for differences between crypto assets and traditional commodities while providing clearer operating conditions for crypto companies in the United States.

He described the proposals as an initial step toward closing gaps in cryptocurrency market oversight. However, he acknowledged that regulatory action by the CFTC cannot indefinitely substitute for legislation that Congress must enact.

Bernstein previously predicted that the CLARITY Act’s failure could accelerate the development of cryptocurrency regulation by the SEC and CFTC.

Source: Incrypted