CFTC Proposes New Crypto Rules to Establish Federal Trading Framework

The Commodity Futures Trading Commission (CFTC) has initiated a rulemaking process to establish a comprehensive federal regulatory framework for retail crypto asset transactions ². On Oct. 5, 2026, the agency published an Advanced Notice of Proposed Rulemaking (ANPRM) to seek public comment on its intent to build fit-for-purpose rules under Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) ².

The proposed framework, which comprises Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM), represents a shift away from the previous administration's "regulation-by-enforcement" approach ¹. It follows the U.S. Senate's failure to advance the Clarity Act in October 2026 ¹. At the time of writing, the broader crypto market remains stable, with $BTC trading at $86,274 and $ETH at $2,715.

A Purpose-Built Option for Crypto Exchanges

Under the proposed rules, the CFTC aims to codify a new subcategory of designated contract market (DCM) registration specifically tailored for crypto asset transactions, known as a "crypto asset market" ². Unlike legacy rules designed for traditional commodities, these regulations are intended to account for the unique infrastructure of digital assets ¹.

According to an op-ed by CFTC Chairman Michael S. Selig, the proposed rules would not force crypto assets to trade exclusively on CFTC-registered platforms, as the agency lacks the congressional authority to mandate such a requirement ¹. Instead, the framework offers a voluntary, single federal market-regulatory scheme ¹.

A key incentive for exchanges registering under this federal framework is the permission to allow retail customers to trade on a margined, leveraged, or financed basis ¹. This distinguishes registered platforms from ordinary spot-trading venues, placing them squarely within the CFTC's regulatory jurisdiction ¹.

Shifting Away from State-Level Oversight

Historically, many crypto platforms operated in the United States via subsidiaries holding state money-transmitter licenses ¹. Selig noted that state money-transmitter laws are non-uniform and designed primarily for payment-services providers rather than financial markets ¹.

The CFTC argues that a uniform national regime is necessary to prevent the structural vulnerabilities that led to the collapses of state-licensed and offshore platforms like FTX, BlockFi, and Voyager Digital ¹. While most offshore and state-regulated FTX entities went bankrupt in 2022, Selig pointed out that customer property held by FTX's CFTC-registered subsidiary remained segregated and secure ¹.

The new rules will focus on three primary regulatory objectives:

• Preventing abusive and manipulative trading practices under a uniform national regime ².
• Providing market participants with crypto-specific contextual information and industry best practices for compliance ².
• Safeguarding customer funds and preventing conflicts of interest through stringent federal standards ¹.

Regulatory Alignment and Next Steps

The rulemaking process follows a joint interpretive release issued by the SEC and the CFTC on March 17, 2026, which took effect on March 23, 2026 ⁵. That joint interpretation clarified that a broad swath of crypto assets, including bitcoin and ether, are non-securities falling under the CFTC's regulatory authority ¹.

The ANPRM was submitted to the Office of Information and Regulatory Affairs (OIRA) on Sept. 17, 2026, under Regulation Identifier Number (RIN) 3038-AF80, where it remains pending review as a "Prerule" ⁴. The CFTC has stated that the proposed rules are not classified as "economically significant" under Executive Order 12866, meaning they are not expected to have an annual economic impact of $100 million or more ⁴.

Market participants and the public have a 60-day window to submit written comments following the publication of the ANPRM in the Federal Register ². The Commission plans to use this feedback to shape future formal rulemakings regarding retail commodity transactions involving crypto assets ².