CFTC submits crypto market regulation plan to White House
In brief
- CFTC submits crypto regulatory action to White House at prerule stage
- Submission follows Senate's failure to advance CLARITY Act
- CFTC and SEC chairs signal readiness to regulate crypto with existing authority
Regulators Act Without Congress
The submission comes days after the Senate failed to advance the CLARITY Act, legislation aimed at establishing a federal regulatory framework for crypto markets. Rather than wait, both the CFTC and SEC signaled they're moving forward independently.
CFTC Chair Michael Selig stated the agency was "locked in and ready to ship" rules for crypto markets using its existing statutory authority. Meanwhile, SEC Chair Paul Atkins said the securities regulator would move ahead "with or without legislation."
Immediate Steps Already Underway
The day after the Senate vote, both agencies took action. The CFTC issued a no-action position for providers of passive software, while the SEC announced temporary exemptions for certain platforms facilitating onchain trading of tokenized securities.
Back in August, Selig laid out the strategy at the CFTC's Innovation Advisory Committee conference. He said the agency was prepared to use existing authority to establish a crypto asset market regime if Congress stalled. He'd also directed CFTC staff to explore rules that could allow existing registrants and currently unregistered crypto exchanges to become a designated contract market called a 'crypto asset market.'
Coinbase CEO Brian Armstrong echoed the sentiment. The SEC and CFTC had "the tools they need to create clear rules under existing authority," he posted on X after the Senate vote.
The filing doesn't disclose specifics of what the CFTC is proposing. What's clear: regulators aren't waiting for Congress to act.
