According to ChainCatcher, The Wall Street Journal reported that on October 5, Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig announced that the CFTC had formally proposed its first set of rules for regulating crypto markets, aimed at fostering innovation and protecting investors.
Previously, after Congress failed to pass legislation clarifying the federal legal status of crypto assets, the CFTC and SEC took the lead in developing market-structure rules under their existing statutory authority. During the previous administration, the two regulators primarily used enforcement actions against crypto exchanges, custodians, and software developers, prompting many crypto businesses to move overseas.
The introduction of the new rules marks a major shift in U.S. federal crypto regulation from “regulation by enforcement” to proactive rulemaking.
Previously, after Congress failed to pass legislation clarifying the federal legal status of crypto assets, the CFTC and SEC took the lead in developing market-structure rules under their existing statutory authority. During the previous administration, the two regulators primarily used enforcement actions against crypto exchanges, custodians, and software developers, prompting many crypto businesses to move overseas.
The introduction of the new rules marks a major shift in U.S. federal crypto regulation from “regulation by enforcement” to proactive rulemaking.