US commodities regulator launches process for federal crypto market rules

The planned rules could influence how digital asset exchanges structure their businesses in the US and how federal oversight develops alongside crypto market innovation.

The US Commodity Futures Trading Commission (CFTC) has launched a rulemaking process to establish federal rules for crypto asset transactions and markets. The agency published an Advanced Notice of Proposed Rulemaking (ANPRM) addressing Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM).

The CFTC is considering measures to prevent abusive practices, provide crypto-specific guidance on regulatory requirements and create a dedicated subcategory of designated contract market registration for crypto asset markets.

The proposed rules would give CFTC-registered exchanges a purpose-built federal option for offering crypto assets, including the ability to provide retail customers with margined, leveraged or financed trading.

CFTC Chairman Michael S. Selig said the agency’s approach is intended to establish clear rules and consumer protections while allowing crypto markets to operate within a uniform national regulatory framework.

The action follows the CFTC and Securities and Exchange Commission’s joint interpretation earlier this year, which clarified the treatment of certain crypto assets, including Bitcoin and Ether, as non-securities under the CFTC’s regulatory authority. Selig said the new initiative is intended to address gaps in crypto market structure through rules designed to prevent fraudulent and abusive practices rather than relying primarily on enforcement after misconduct occurs.