CFTC Sends Crypto Rule Proposal to White House as Congress Delays Clarity Act

The Commodity Futures Trading Commission (CFTC) submitted a new crypto market proposal to the White House Office of Management and Budget (OMB) after the Senate did not advance the Clarity Act. The agency has not disclosed the specifics of the draft, including which digital assets it would cover or the obligations it would impose on exchanges.

Regulatory Process

Once the OMB reviews the draft, it will return to the CFTC for a vote and a period of public comment. A subsequent vote would be required before any rules could take effect.

SEC Innovation Exemption

In parallel, the Securities and Exchange Commission (SEC) announced a five‑year conditional exemption for qualifying tokenized‑stock platforms, allowing them to offer on‑chain trading of certain tokenized stocks without registering as securities exchanges.

No‑Action Relief for Software Providers

The CFTC also issued a no‑action letter that permits certain passive software providers, including some crypto‑wallet interfaces, to connect users to regulated derivatives markets without registering as introducing brokers. The relief applies to software that merely displays market data and forwards orders to registered firms, provided it meets conditions such as risk disclosures, recordkeeping, and marketing compliance.

Future Coordination

Both the CFTC and SEC have pledged to continue collaborating to provide clearer rules for the crypto industry under their existing authorities, despite the legislative setback.