CFTC proposes federal oversight framework for US crypto exchanges

The Commodity Futures Trading Commission (CFTC) has proposed a new regulatory framework to provide federal oversight for certain cryptocurrency exchanges. Following the failure of the Digital Asset Market Clarity (CLARITY) Act in the US Senate, CFTC Chair Michael Selig announced that the agency intends to move forward with regulation at the direction of President Donald Trump using existing statutory authorities.

A central component of the proposal is the creation of a new category of designated contract market (DCM) called a “crypto asset market” (CAM). This would allow exchanges offering retail customers the ability to trade crypto assets on a margined, leveraged, or financed basis to opt for uniform national oversight under the CFTC rather than navigating a patchwork of individual state regulations.

The proposed rules, referred to as ‘CTX’, would include requirements for market surveillance, anti-manipulation, customer protection, and proof-of-reserves controls. However, the framework would not extend to “ordinary spot crypto exchanges,” which would likely continue to operate under state money transmission laws. The CFTC would maintain authority to enforce anti-fraud and anti-manipulation regulations for companies offering spot trading for assets like Bitcoin.