The U.S. Commodity Futures Trading Commission (CFTC) is preparing its first formal regulatory package specifically targeting cryptocurrency markets, introducing two proposed frameworks known as Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM).
The initiative marks a shift away from an enforcement-led approach toward federal rules designed around the characteristics of crypto markets. The CFTC said prolonged regulatory uncertainty has contributed to the development of the U.S. crypto sector outside a clear federal framework, while Congress has yet to enact comprehensive market legislation.
According to the agency, CTX and CAM would establish broader standards for trading platforms covering areas such as market manipulation, orderly and transparent trading, conflicts of interest and protection of customer assets. The CFTC cited the collapse of FTX as an example of the risks that can emerge when crypto businesses operate through fragmented regulatory structures.
The agency noted that platforms including FTX, BlockFi and Voyager Digital had operated in the United States largely through state-level money transmission licenses. Those licenses are designed primarily for payment services and can differ significantly from one state to another, creating a regulatory structure that the CFTC considers unsuitable for financial-market activities.
The CFTC also highlighted the treatment of customer assets at FTX's CFTC-registered subsidiary, stating that despite the bankruptcy of several offshore and state-regulated entities connected to the exchange, customer assets held by the registered subsidiary remained segregated and secure.
The new framework follows the Senate's failure to advance the Clarity Act earlier this month. Rather than waiting for Congress to establish a new statutory framework, the CFTC intends to use its existing authority to provide a federal regulatory pathway for crypto platforms.
The agency said the initiative also builds on a joint position previously issued with the U.S. Securities and Exchange Commission (SEC), under which a broad group of crypto assets, including Bitcoin and Ethereum, were described as commodities rather than securities and therefore fall within the CFTC's regulatory jurisdiction.
Under CTX and CAM, CFTC-registered exchanges would face new standards for listing qualifying crypto assets. However, the rules would not require all crypto assets to be traded exclusively on CFTC-registered platforms, as the agency said such a mandate would require additional authority from Congress.
Instead, exchanges seeking to operate under the federal framework would have the option of registering with the CFTC. Registered platforms would be permitted to provide individual investors with margin, leveraged and finance-backed crypto trading, creating capabilities not generally available through state-licensed spot exchanges.
The CFTC also criticized the previous administration's approach of encouraging crypto companies to “come and register,” arguing that firms were effectively required to treat the assets they offered as securities in order to fit within SEC registration rules developed for traditional financial markets.
The agency said its proposed framework is intended to recognize the structural differences between crypto assets and other commodities. However, it also acknowledged that CTX and CAM represent only the beginning of a broader regulatory process and cannot permanently substitute for comprehensive legislation from Congress.
