🇺🇸 WSJ: The CFTC has unveiled its first set of rules for regulating the US crypto market.
The regulator is launching two new frameworks: Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM).
▪️ The new rules will establish requirements for CFTC-registered exchanges that offer crypto asset trading.
▪️ BTC, ETH, SOL, XLM, XTZ, and XRP are classified as "digital commodities" (rather than securities) and fall under the CFTC's regulatory purview.
▪️ The new rules will not mandate that crypto assets be traded exclusively on CFTC-regulated platforms; such a requirement would necessitate a separate act of Congress.
▪️ Instead, the CFTC is creating a distinct federal framework for crypto exchanges that wish to operate under a unified regulatory system. CFTC-registered crypto exchanges will be able to officially offer retail clients margin trading, leverage, and financed transactions within the scope of federal regulation.
▪️ These exchanges will be subject to federal requirements regarding the protection of client funds, the prevention of market manipulation and conflicts of interest, and the assurance of transparent trading.
CFTC Chair Michael Selig described this as merely the first stage of crypto market regulation. Following the failure to advance the CLARITY Act in the US Senate, the CFTC and the SEC have effectively begun shaping new rules for the crypto market using their existing statutory authority.
The regulator is launching two new frameworks: Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM).
▪️ The new rules will establish requirements for CFTC-registered exchanges that offer crypto asset trading.
▪️ BTC, ETH, SOL, XLM, XTZ, and XRP are classified as "digital commodities" (rather than securities) and fall under the CFTC's regulatory purview.
▪️ The new rules will not mandate that crypto assets be traded exclusively on CFTC-regulated platforms; such a requirement would necessitate a separate act of Congress.
▪️ Instead, the CFTC is creating a distinct federal framework for crypto exchanges that wish to operate under a unified regulatory system. CFTC-registered crypto exchanges will be able to officially offer retail clients margin trading, leverage, and financed transactions within the scope of federal regulation.
▪️ These exchanges will be subject to federal requirements regarding the protection of client funds, the prevention of market manipulation and conflicts of interest, and the assurance of transparent trading.
CFTC Chair Michael Selig described this as merely the first stage of crypto market regulation. Following the failure to advance the CLARITY Act in the US Senate, the CFTC and the SEC have effectively begun shaping new rules for the crypto market using their existing statutory authority.