CFTC Clarifies Crypto Rules After Clarity Act Stalls

The Commodity Futures Trading Commission (CFTC) has clarified its guidelines for crypto assets and blockchain technologies in a recent press release on September 24. The updates address investments using tokenized versions of permitted investments and the use of blockchain technologies to meet recordkeeping requirements for registrants, according to the release.

These updates were initially published on March 20, responding to inquiries about matters outlined in CFTC Staff Letters 25-39 and 26-05. CFTC Chairman Michael S. Selig expressed satisfaction with the staff's efforts to provide regulatory clarity for the crypto industry. Separately, on September 17, the CFTC submitted a proposal to the Office of Management and Budget to regulate crypto asset transactions and markets.

This proposal would have made the CFTC the primary regulator for cryptocurrency had the Clarity Act, which stalled in the Senate, been passed. Selig had previously stated that he would seek staff input on codifying market structure for digital assets if the Clarity Act failed. Selig emphasized the importance of establishing a crypto asset market regime using existing authorities if Congress didn't act, stating that President Trump had promised a crypto asset market structure and the CFTC would help deliver it.