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The CFTC sent a crypto market proposal to the White House Office of Management and Budget for review after the Senate failed to advance the CLARITY Act. The agency has not disclosed which assets or market participants the proposal covers, or how far it believes its authority extends.
The draft will return to the CFTC after OMB review for a commission vote and public comment. A second vote would be required before the rules take effect. CFTC Chair Mike Selig said the agency is ready to move ahead with rules for what he called a new frontier of finance.
Why it matters
The CFTC action keeps US crypto rulemaking moving without new legislation, alongside a separate SEC initiative. The SEC introduced a five-year conditional exemption for qualifying platforms to offer on-chain trading of certain tokenized stocks without registering as securities exchanges.
Both agencies have said they will pursue clearer digital-asset rules under existing authority after the CLARITY Act stalled in the Senate. The approach gives market participants two agency-led paths forward, but the eventual scope of the CFTC proposal remains unresolved.
Market impact
The CFTC also issued no-action relief for certain passive software providers, including some crypto wallet interfaces, to connect users with regulated derivatives markets without registering as introducing brokers. Eligible providers can display markets, submit orders to registered firms, market specific contracts and receive transaction-based fees.
The relief bars providers from holding customer assets, generating buy or sell signals or controlling order routing and execution. It also requires risk disclosures, recordkeeping and compliance with marketing rules, and remains in place until the CFTC adopts rules or guidance on software developer registration.
Frequently asked questions
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What happens after the CFTC proposal reaches OMB?
After OMB review, the proposal will return to the CFTC for a commission vote and public comment. A second vote would be required before it takes effect.
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What is still unknown about the CFTC crypto proposal?
The CFTC has not disclosed which crypto assets or exchanges the proposal covers, what eligibility requirements would apply or how far the agency believes its authority extends.
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What does the SEC's five-year exemption cover?
The SEC exemption gives qualifying platforms a five-year path to offer on-chain trading of certain tokenized stocks without registering as securities exchanges.
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Which software providers receive CFTC no-action relief?
Certain passive software providers, including some crypto wallet interfaces, can connect users with regulated derivatives markets without registering as introducing brokers.
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What restrictions apply to software providers using the relief?
Providers cannot hold customer assets, generate buy or sell signals or control order routing and execution. They must also meet risk disclosure, recordkeeping and marketing requirements.
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