The CFTC is pushing forward with crypto regulations, submitting a proposal to the White House after the Senate stalled on the Clarity Act.
The Commodity Futures Trading Commission (CFTC) is moving ahead with its plans to regulate the cryptocurrency market, having submitted a proposal to the White House amid inaction from Congress on the Clarity Act.
On Thursday, the CFTC sent a new regulatory proposal to the White House Office of Management and Budget (OMB), but it did not disclose specific details, leaving questions about which crypto assets would be affected, the qualifications required for exchanges, and the scope of the CFTC's authority.
After the OMB completes its review, the proposal will return to the CFTC for a vote and public comments, followed by another vote before it can take effect.
This development coincides with the Securities and Exchange Commission (SEC) offering an “innovation exemption,” which permits qualifying platforms to trade tokenized stocks on-chain for five years without registering as securities exchanges.
Both regulatory bodies are collaborating to clarify regulations for the cryptocurrency sector, especially given the delays surrounding the Clarity Act.
CFTC Chair Mike Selig expressed confidence in the agency's readiness to implement rules for the evolving financial landscape via a post on X following the Senate's recent vote.
Additionally, the CFTC issued a no-action letter that allows certain software providers to connect users with regulated derivatives markets without the need to register as introducing brokers. This applies to passive software that lets users view markets and place orders directly with registered firms, including through crypto wallets.
While these providers can offer specific contracts and earn transaction fees, they are restricted from holding customer assets, generating trading signals, or managing order execution. Compliance with risk disclosures and recordkeeping is required, and this relief will remain until the CFTC sets formal rules for software developers' registration.
