[CFTC Chairman: Will Advance Crypto Market Structure and Perpetual Contract Rules Within Existing Authority]
CFTC Chairman Mike Selig confirmed that after the Senate rejected the “Clear Act,” the agency will use its existing statutory powers to move forward with rulemaking on crypto market structure and to reassess the current rules applicable to around-the-clock on-chain markets driven by algorithms and intelligent agents.
This statement indicates that U.S. regulators are shifting from “waiting for legislation” to “administrative rulemaking.” The CFTC may, by establishing designated categories of contract markets, allow compliant trading venues under its oversight to offer leveraged crypto trading. Although the CFTC has stated that it lacks authority to regulate spot markets, the compliance of derivatives and leveraged trading channels will directly affect the cost and expectations for institutional capital entering the crypto market.
For the market, this means that the infrastructure for compliant derivatives trading is accelerating. This could be beneficial for mainstream on-chain DeFi protocols and liquidity expectations for compliant centralized exchanges. However, the spot market still lacks direct federal-level regulation, and the regulatory split between the spot and derivatives markets may persist. Traders should continue to monitor policy developments from individual states and the SEC.
CFTC Chairman Mike Selig confirmed that after the Senate rejected the “Clear Act,” the agency will use its existing statutory powers to move forward with rulemaking on crypto market structure and to reassess the current rules applicable to around-the-clock on-chain markets driven by algorithms and intelligent agents.
This statement indicates that U.S. regulators are shifting from “waiting for legislation” to “administrative rulemaking.” The CFTC may, by establishing designated categories of contract markets, allow compliant trading venues under its oversight to offer leveraged crypto trading. Although the CFTC has stated that it lacks authority to regulate spot markets, the compliance of derivatives and leveraged trading channels will directly affect the cost and expectations for institutional capital entering the crypto market.
For the market, this means that the infrastructure for compliant derivatives trading is accelerating. This could be beneficial for mainstream on-chain DeFi protocols and liquidity expectations for compliant centralized exchanges. However, the spot market still lacks direct federal-level regulation, and the regulatory split between the spot and derivatives markets may persist. Traders should continue to monitor policy developments from individual states and the SEC.