The Commodity Futures Trading Commission (CFTC) is advancing its regulatory framework for the cryptocurrency market, submitting a proposal to the White House following the Senate's failure to pass the Clarity Act earlier this week.
On Thursday, the CFTC delivered a new proposal to the White House Office of Management and Budget (OMB). However, specifics regarding the proposed regulations remain undisclosed, leaving unclear the types of crypto assets that would be affected, the qualifications for exchanges, any applicable restrictions, and the extent of the CFTC's regulatory authority.
Once the OMB completes its review, the proposal will return to the CFTC for a vote and public commentary, after which it will require another vote to be implemented.
This move comes concurrently with the Securities and Exchange Commission (SEC) announcing an “innovation exemption” that allows qualifying platforms a five-year window to trade tokenized stocks on-chain without needing to register as securities exchanges.
Both the CFTC and SEC have committed to collaborating to establish clearer regulations for the cryptocurrency industry under their current authority, particularly in light of the Clarity Act's stagnation.
“The CFTC is locked in and ready to ship its rules for the new frontier of finance,” stated CFTC Chair Mike Selig in a post on X after the recent Senate vote.
Additionally, the CFTC released a no-action letter that allows certain software providers to link users to regulated derivatives markets without needing to register as introducing brokers. This applies to passive software that enables users to view markets and submit orders directly to registered firms, including through crypto wallets.
These providers can promote specific contracts and earn transaction-based fees, but are prohibited from holding customer assets, generating buy or sell signals, or controlling order routing and execution, according to the letter. The relief is conditioned on compliance with risk disclosures, recordkeeping, and marketing regulations and will remain effective until the CFTC establishes formal rules or guidance on registration for software developers.