Key Takeaways
- • The CFTC filed crypto market structure rulemaking with the White House Office of Management and Budget on Sept. 17, 2026, bypassing Congress after the Senate blocked the CLARITY Act in a procedural vote.
- • CFTC Chair Michael Selig committed in August to using the agency's existing authorities to establish rules for crypto markets, including a framework allowing both registered and unregistered exchanges to operate as designated contract markets under CFTC oversight.
- • The proposed framework would extend CFTC oversight to crypto wallets, trading interfaces, perpetual contracts, and event contracts, creating a new asset class designation called a "crypto asset market."
- • The rulemaking currently sits at the prerule stage with the Office of Management and Budget, facing potential revisions, a CFTC vote, public comment period, and final commission approval before publication.
Summary
The Commodity Futures Trading Commission advanced its crypto market structure regulatory agenda on Sept. 17 by filing a proposed rulemaking with the White House's Office of Information and Regulatory Affairs, the OMB division responsible for reviewing federal regulations before they take effect. The move represents a shift in strategy following the Senate's failure to advance the CLARITY Act, comprehensive legislation that would have established a federal framework for cryptocurrency markets.
CFTC Chair Michael Selig had telegraphed this contingency plan in August, stating he directed staff to develop rules codifying a CFTC market structure for crypto assets using the agency's existing statutory authorities. The day after the Senate blocked the CLARITY Act, Selig signaled on social media that the agency was "locked in and ready to ship" rules for crypto markets, underscoring regulatory momentum despite legislative setbacks.
According to remarks Selig delivered in August, the framework would enable both current registrants and unregistered exchanges to be designated as a specialized category of designated contract market called a crypto asset market. This designation would permit leveraged and margined trading under CFTC oversight. The proposal extends beyond spot exchanges, potentially reaching crypto wallets and decentralized trading interfaces that offer perpetual and event contracts—expanding the agency's regulatory perimeter significantly.
The filing, titled "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets," remains at the prerule stage, the earliest point in the regulatory pipeline. No specific rule details were disclosed in the White House filing. The rulemaking will now move through a formal review process including potential OMB revisions, a CFTC commission vote, a public comment period, and final approval before publication as a proposed rule.
CFTC Chair Michael Selig had telegraphed this contingency plan in August, stating he directed staff to develop rules codifying a CFTC market structure for crypto assets using the agency's existing statutory authorities. The day after the Senate blocked the CLARITY Act, Selig signaled on social media that the agency was "locked in and ready to ship" rules for crypto markets, underscoring regulatory momentum despite legislative setbacks.
According to remarks Selig delivered in August, the framework would enable both current registrants and unregistered exchanges to be designated as a specialized category of designated contract market called a crypto asset market. This designation would permit leveraged and margined trading under CFTC oversight. The proposal extends beyond spot exchanges, potentially reaching crypto wallets and decentralized trading interfaces that offer perpetual and event contracts—expanding the agency's regulatory perimeter significantly.
The filing, titled "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets," remains at the prerule stage, the earliest point in the regulatory pipeline. No specific rule details were disclosed in the White House filing. The rulemaking will now move through a formal review process including potential OMB revisions, a CFTC commission vote, a public comment period, and final approval before publication as a proposed rule.
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