CFTC proposes crypto rule following Clarity Act setback

On Thursday, the Commodity Futures Trading Commission submitted a proposal to the White House aimed at overseeing cryptocurrency transactions and markets.

Details regarding the specific requirements remain unconfirmed based on the listing on the Office of Management and Budget website, which lists the submission under the titles “Regulation Crypto Asset Transactions” and “Regulation Crypto Asset Markets.”

This action by the CFTC follows the decision by lawmakers on Tuesday to block the long-anticipated Clarity Act. Although the legislation failed to advance, both the CFTC and the Securities and Exchange Commission previously indicated they would proceed with independent crypto rulemaking.

CFTC Chair Mike Selig stated on Wednesday that despite the setback with the Clarity Act, the regulatory agency remains committed to helping U.S. President Trump fulfill his regulatory goals for the cryptocurrency sector.

In a post on X, Selig called the Senate vote outcome unfortunate while emphasizing that the CFTC is prepared to deliver its rules for the new financial landscape.

Prior to the procedural vote, Selig maintained that rulemaking would move forward regardless of whether the Clarity Act became law, with the objective of finalizing regulations before the current administration concludes its term.

Senators confirmed Selig as chair of the regulatory body last year. Having previously served as chief counsel for the SEC Crypto Task Force, Selig was praised by White House Crypto and AI Tsar David Sacks for playing a key role in advancing the President’s cryptocurrency agenda.

During his campaign, President Trump pledged support for the crypto sector following a period under the prior administration where regulators targeted digital asset firms with lawsuits, largely over claims of selling unregistered securities.

Since taking office, both the SEC and the CFTC have adopted a more accommodating oversight posture toward the industry.

The CFTC is not alone in advancing regulatory actions; earlier in the week, the SEC approved trading for tokenized stocks. Furthermore, in August, the SEC introduced its own framework for crypto asset offerings while major legislation remained stalled.

Last month, President Trump encouraged legislators to pass the Clarity Act, describing it as very powerful, though Republicans asserted that Democrats intentionally obstructed it.

Democratic opposition centered primarily on ethics provisions within the measure. President Trump secured substantial backing from major industry participants during his campaign, and his family has generated revenue from digital asset projects since he entered office.

Certain lawmakers have raised concerns about potential conflicts of interest, though the White House has consistently denied any wrongdoing.

A revised version of the bill began circulating in July to address ethical concerns by prohibiting officials from profiting from crypto, but some Democrats argued the restrictions were insufficient.

The Clarity Act seeks to establish a formal division of oversight between regulatory agencies by defining which digital assets qualify as securities, commodities, or stablecoins.

What proposal did the CFTC send to the White House?

The CFTC sent a proposal titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” to regulate cryptocurrency transactions and markets.

Why did the CFTC submit this proposal now?

The submission follows the blocking of the Clarity Act by lawmakers, prompting the CFTC and SEC to proceed with independent crypto rulemaking.

What is the goal of the Clarity Act?

The Clarity Act aims to formally divide regulatory oversight by determining whether specific digital assets are classified as securities, commodities, or stablecoins.

Who is the Chair of the CFTC?

Mike Selig serves as the Chair of the Commodity Futures Trading Commission.

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