The US Commodity Futures Trading Commission (CFTC) has published an Advanced Notice of Proposed Rulemaking (ANPRM) seeking public comments on a proposed regulatory framework for certain retail transactions involving crypto assets.
The framework would cover retail commodity transactions involving crypto assets under the Commodity Exchange Act. The CFTC refers to these transactions as crypto asset transactions, or CTXs.
What Does The CFTC Propose?
The CFTC is seeking comments on how it can prevent abusive practices in crypto asset markets and CTXs through a uniform national regulatory framework. It is also looking for views on providing market participants with crypto-specific information on regulatory requirements and practices that the agency considers useful for compliance.
According to the CFTC release, the approach is based partly on the agency's overseeing aspects of crypto asset markets since 2014. The agency is also considering creating a new subcategory of designated contract market registration called a crypto asset market. The proposed category would be designed specifically for CTXs.
CFTC Chairman Michael S. Selig said the move is intended to provide greater clarity, certainty and consumer protection in crypto asset markets.
“Today’s action is a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world,” Selig said.
He said the process would use the CFTC’s existing statutory authorities to develop a federal crypto asset regulatory market structure. Selig also said the agency would work towards regulations designed to prevent fraudulent schemes rather than only taking action after such schemes occur.
What Happens Next?
The CFTC said it will use the information and comments received through the ANPRM to inform potential future agency action, including possible rulemaking concerning the provision covering these retail crypto transactions.
The announcement does not introduce final rules. The CFTC is currently seeking public input on the proposed regulatory approach. The comments must be submitted in writing within 60 days of the ANPRM’s publication in the Federal Register.
The development comes as US lawmakers continue to consider legislation related to digital asset market regulation. The CLARITY Act, which seeks to establish a federal regulatory framework for digital assets, did not advance for the next round of voting during a recent US Senate vote.
