CFTC joins SEC in proposing crypto framework after failed CLARITY vote

CFTC Chair Michael Selig declared that the agency would proceed with crypto regulation, regardless of Congress' failure to pass the Digital Asset Market Clarity (CLARITY) Act. Selig announced proposals at the Fordham Law Blockchain Regulatory Symposium, giving crypto companies the option to operate under the CFTC's jurisdiction rather than multiple state regulations.

The CFTC will establish a new category of designated contract market (DCM) called crypto asset market (CAM), allowing certain exchanges to register as such. These rules would allow the CFTC to oversee crypto asset exchanges uniformly under existing statutory authorities, rather than relying on enforcement from the previous administration.

The SEC already proposed a tailored securities offering regime for crypto assets in August, indicating that both agencies would push forward with regulation independently of legislative action.