CFTC Seeks Public Comment on Crypto Asset Rules

Update (Oct 5, 16:58 UTC): The agency has published an advance notice outlining Regulation CTX and Regulation CAM, proposing a 60-day public comment period and seeking to use leverage offers as the trigger for federal oversight.

Update (Oct 5, 16:13 UTC): The agency has now launched formal rulemaking to establish Regulation CTX, Regulation CAM, and a dedicated crypto asset market exchange.

The Commodity Futures Trading Commission (CFTC) published an Advanced Notice of Proposed Rulemaking (ANPRM) to establish a comprehensive regulatory framework for retail commodity transactions involving crypto assets, according to CFTC_Press. The regulatory initiative focuses on section 2(c)(2)(D) of the Commodity Exchange Act (CEA).

According to CFTC Chairman Michael S. Selig, the action aligns with efforts to incorporate crypto asset transactions into a uniform national market regulatory framework. The Commission aims to establish regulations designed to prevent fraudulent schemes rather than relying solely on post-action enforcement.

Scope of the Proposed Rulemaking

The ANPRM solicits public comment on several key areas, including methods to prevent abusive practices within crypto asset markets under a uniform national regime. It also seeks input on providing market participants with contextual information based on industry best practices developed since 2014.

Additionally, the notice explores codifying a subcategory of designated contract market registration specifically purpose-built for crypto asset transactions. The feedback gathered will inform potential future agency actions and formal rulemakings.

Key facts

• The CFTC published an Advanced Notice of Proposed Rulemaking regarding retail commodity transactions involving crypto assets.
• Public comments must be submitted in writing and received within 60 days of publication in the Federal Register.
• Comments will be made publicly available on Regulations.gov.
• The initiative intends to incorporate crypto asset transactions into the agency's uniform national market regulatory framework.