Crypto World
CFTC Sends Crypto Regulatory Framework to White House Review
The U.S. Commodity Futures Trading Commission (CFTC) has submitted a new regulatory action covering how it plans to oversee crypto asset transactions and crypto asset markets, with the proposal now moving through the federal rulemaking pipeline for White House review.
According to a filing published through the Office of Information and Regulatory Affairs (OIRA) at reginfo.gov, the action—titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets”—was received on Sept. 17 and is currently listed at the “prerule” stage, meaning it is early in the process and has not yet been formally proposed.
Key takeaways
- The CFTC has initiated a new rulemaking track for crypto-related transactions and markets, but the details have not been released yet.
- OIRA’s “prerule” designation indicates the action is still at an early stage and not a formal notice of proposed rulemaking.
- The move follows the Senate’s failure to advance the CLARITY Act, keeping pressure on regulators to act without new legislation.
- In parallel, both the CFTC and SEC signaled they could proceed using existing authority, including through targeted relief and exemptions.
A CFTC rulemaking filing enters the federal review track
The OIRA entry for the CFTC action provides the clearest public confirmation so far of the agency’s regulatory direction: the filing exists, has been received, and is underway as part of the U.S. government’s rulemaking review process. However, the filing does not outline what specific requirements the CFTC plans to impose or how it intends to define regulated crypto market structures.
For market participants, the practical significance is that rule development is not only being discussed—it is being processed through government channels that typically precede public comments and formal proposals. Still, because the item remains at the prerule stage, the scope, timing, and concrete compliance expectations are not yet available.
After the CLARITY Act setback, regulators show momentum
This CFTC filing comes days after the U.S. Senate failed to advance the CLARITY Act, a bill intended to establish a federal framework for crypto market regulation.
That failure matters because it reduces the likelihood of Congress providing an immediate, comprehensive structure that could harmonize oversight across agencies. With legislation stalled, the burden shifts to regulators to define roles and boundaries through existing statutory authority—an approach the CFTC and SEC appear prepared to pursue.
CFTC and SEC actions signal “rules with or without legislation”
Shortly after the Sept. 15 Senate vote, CFTC Chair Michael Selig posted on X that the agency was “locked in and ready to ship” rules for crypto markets using its existing authority. SEC Chair Paul Atkins made a similar point, saying the SEC would move ahead “with or without legislation.”
The following day, both regulators took visible steps. The CFTC issued a no-action position for providers of passive software. Separately, the SEC announced temporary exemptions for certain platforms facilitating onchain trading of tokenized securities, as reflected in an SEC communication posted on X.
These actions do not replace broad rulemaking, but they do indicate an interim strategy: provide targeted regulatory relief and clarify operational pathways for specific categories of activity while longer-term frameworks are developed.
What the CFTC has said before: using existing authority to define a market regime
The CFTC’s willingness to move ahead without waiting for legislation has been discussed publicly before. Earlier remarks by Chair Selig at the CFTC’s Innovation Advisory Committee conference on Aug. 20 indicated the agency had been assessing whether it could establish a crypto asset market regime under existing authority if the CLARITY Act stalled.
In those remarks, Selig indicated he directed CFTC staff to explore rule options that could enable existing registrants and currently unregistered crypto exchanges to become a type of designated contract market—referred to as a “crypto asset market”—where leveraged or margined crypto trading could fall under CFTC oversight.
This matters for investors and builders because the classification of trading venues and the treatment of leverage and margin can directly affect which firms can operate, which registrations may be required, and what investor protection frameworks are applied. It also helps determine how market participants structure products and routing of orders.
Industry leaders have echoed the expectation that regulators would proceed. Coinbase CEO Brian Armstrong said in a Sept. 15 X post that the SEC and CFTC “have the tools they need to create clear rules under existing authority,” adding that he expected regulators to begin working “in earnest.”
What to watch next as the filing moves from prerule to proposal
For now, the key unknown is the substance: the OIRA record confirms the CFTC’s intention to regulate crypto asset transactions and crypto asset markets, but it does not provide the operational details firms will need to prepare. The next developments to monitor are when the action advances beyond prerule, whether it is broken into specific proposed rule components, and how it aligns—or potentially conflicts—with concurrent SEC efforts affecting tokenized securities and onchain trading.
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