The Commodity Futures Trading Commission (CFTC) is seeking public comment on a proposed rule to establish a regulatory framework for retail commodity transactions involving crypto assets.
The rule looks at how the commission can prevent abusive practices in crypto asset markets under a uniform national regime. It also seeks to provide market participants with crypto asset-specific contextual information concerning certain requirements and practices that are commonly accepted in the industry and represent industry best practices for compliance. It would also codify a subcategory of designated contract market registration, known as a crypto asset market.
“Today’s action is a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world,” CFTC Chair Michael Selig said. “The American people deserve clarity, certainty, and consumer protections in the crypto asset markets and the agency is committed to delivering this by incorporating crypto asset transactions into its uniform national market regulatory framework. The Commission’s announcement begins our process of new rulemakings grounded in the CEA’s purpose and President Trump’s directive to propose a federal crypto asset regulatory market structure using the CFTC’s existing statutory authorities. Under my leadership, the Commission will take every necessary step to establish regulations that are designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX.”
Comments must be in writing and received within 60 days of the proposal’s publication in the Federal Register.
Blockchain Association CEO Summer Mersinger called the proposal an important step toward setting workable rules for digital asset markets.
“By beginning the process of developing fit-for-purpose rules for retail crypto asset transactions and the markets where they occur, the Commission is working to give market participants greater certainty, strengthen consumer protections, and help keep responsible innovation in the United States. We appreciate the Chairman’s leadership, and we look forward to engaging with the Commission throughout this process and continuing the work toward a durable regulatory framework for digital assets,” Mersinger said.
The commission intends to use the public comments to inform potential future agency action.