CFTC Eyes New Crypto Market Rules

The Commodity Futures Trading Commission (CFTC) is set to establish a fresh set of federal regulations for crypto markets in the wake of Congress’ failure to pass far-reaching crypto market structure legislation.

The derivatives regulator has released an Advanced Notice of Proposed Rulemaking (ANPRM) on Sunday, inviting public comments on two proposed regulatory regimes it plans to introduce - Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM).

This is part of CFTC's effort to establish crypto-specific regulations with its current authority under the Commodity Exchange Act.

"Today's action is a critical step in the CFTC's ongoing efforts to ensure America remains the crypto capital of the world," said CFTC Chairman Michael Selig.

However, it's important to note that this is merely the opening step in the regulatory process. CFTC has yet to enact CTX and CAM rules. It's inviting comments from the industry that may eventually shape formal proposed regulations. Comments will be open for 60 days after the notice is published in the Federal Register.

Aiming at leveraged crypto trading

For now, the immediate concern of the CFTC is not conventional spot trading of cryptocurrency but retail trading involving margin, leverage, or other financing.