CFTC Submits Crypto Market Framework for White House Review

The Commodity Futures Trading Commission (CFTC) filed a proposed rule titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” with the Office of Information and Regulatory Affairs (OIRA) on September 17. The filing follows a Senate procedural vote that blocked the Digital Asset Market CLARITY Act by a 49‑to‑50 margin.

Background and Legislative Context

The CLARITY Act, which would have given the CFTC a central role in overseeing digital commodity markets and established a division of responsibilities with the SEC, failed to achieve the 60 votes needed to begin debate. Seven Senate Democrats who opposed cloture indicated that negotiations could continue, leaving the legislation unresolved.

CFTC’s Proposed Framework

CFTC Chair Michael Selig directed staff to develop a market‑structure framework that could operate under the agency’s existing authority if Congress does not pass new legislation. The proposal, now under OIRA review, could allow existing CFTC registrants and unregistered crypto exchanges to be designated as “crypto asset markets,” enabling leveraged or margined crypto trading under CFTC rules.

Regulatory Process

OIRA’s review is an early step in the federal rulemaking process. After OIRA completes its assessment, the proposal will return to the CFTC for a commission vote, followed by publication and a public comment period. A final rule would require another commission vote before taking effect.

Related Agency Actions

• On the same day, CFTC staff issued a no‑action position for certain software developers that facilitate access to regulated derivatives markets, shielding qualifying providers from enforcement recommendations.
• The SEC released an innovation exemption for eligible tokenized securities, providing a regulatory pathway for specific on‑chain trading models.

Commission Staffing

Chair Selig is currently the sole confirmed commissioner on a body designed to have five members, and the agency’s staff has declined from 708 employees at the end of fiscal 2024 to roughly 556 at the end of fiscal 2025.

Outlook

The CFTC’s framework remains under White House review. If OIRA approves the proposal, the commission will proceed with its internal vote and subsequent public consultation. Meanwhile, negotiations on the CLARITY Act continue in the Senate, with potential revisions needed to secure the required votes for advancement.