CFTC Seeks Input on Crypto Asset Regulatory Framework

Introduction: 

On October 5, 2026, the Commodity Futures Trading Commission (“CFTC”) issued an Advanced Notice of Proposed Rulemaking (“ANPRM”¹) regarding its intent to establish a comprehensive regulatory framework for retail commodity transactions involving crypto assets (“CTXs”) and the exchanges that offer trading in CTXs, which the CFTC calls crypto asset markets (“CAMs”).²

While the ANPRM does not include actual rule text – that would follow in a proposed rulemaking – the ANPRM contains two proposed frameworks: (i) Regulation CTX, which would establish when crypto asset transactions fall under the CFTC’s jurisdiction; and (ii) Regulation CAM which would establish a new CFTC-regulated framework for crypto asset trading venues. CFTC Chairman Michael Selig described the ANPRM as “just the beginning . . . of addressing gaps in crypto-asset market structure and creating clear rules of the road for innovators and market participants.”³

Below, we discuss each of the components of the ANPRM in more detail.

Regulation CTX:

Regulation CTX would establish the CFTC's jurisdiction over CTXs. The ANPRM classifies CTXs as transactions falling under Section 2(c)(2)(D) of the Commodity Exchange Act (“CEA” or the “Act”) and therefore as subject to regulation by the CFTC. Section 2(c)(2)(D) gives the CFTC authority over retail commodity transactions (or offers entered into but not accepted) that are leveraged, margined, or financed, “even if not entered into” on one of those bases (a “covered offer”).⁴