The Commodity Futures Trading Commission said it has published an Advanced Notice of Proposed Rulemaking seeking public comment on a “comprehensive regulatory framework” for certain retail commodity transactions involving crypto assets under Section 2(c)(2)(D) of the Commodity Exchange Act, which the agency refers to as crypto asset transactions, or CTXs.
What the reporting says is in the proposal
In a post summarizing Chairman Michael Selig's op-ed and the agency's move, reporter Jacquelyn Melinek wrote that the CFTC is proposing two new rulemaking frameworks: Regulation Crypto Asset Transactions, or CTX, and Regulation Crypto Asset Markets, or CAM.
Melinek also reported that, under Selig's pitch, CFTC-registered exchanges would have a federal path to offer trading in crypto assets under rules designed specifically for crypto rather than being pushed into older securities frameworks. She added that those federally regulated venues could allow retail customers to trade on a margined, leveraged or financed basis.
What the CFTC says it can and cannot do
Selig described the move as the beginning of a longer rulemaking effort, saying the CFTC is “starting the process of addressing gaps in crypto-asset market structure and creating clear rules of the road for innovators and market participants,” according to Melinek's summary of his remarks.
He also said agency action cannot indefinitely substitute for a statutory framework from Congress. Separately, The Block summarized the proposal as including a new “crypto asset market” exchange category while noting the agency said it cannot require crypto trading to move onto CFTC platforms without congressional action.
For now, the concrete step is the request for public comment.
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