The U.S. Commodity Futures Trading Commission has issued an advance notice of proposed rulemaking, or ANPRM, that seeks to use the agency’s existing authority to build a market structure framework for crypto spot trading, according to crypto reporter Eleanor Terrett. The proposal would sit on top of the current registration structure for designated contract markets, derivatives clearing organizations, and futures commission merchants, while adding a new category called “crypto asset markets.”
One key difference from the Clarity Act, the report said, is that the CFTC is exploring a voluntary federal exchange registration path. Spot exchanges that do not offer leverage could choose to stay outside the framework and continue operating under state money transmitter licenses. Former CFTC Chair J. Christopher Giancarlo said the approach offers exchanges a “clear, voluntary, one federal rulebook path” when customers trade with borrowed funds.
Lawyers cited in the report described the ANPRM as a “clever” or “creative” reading of Section 2(c)(2)(D) of the Commodity Exchange Act. They said it could reach retail crypto spot transactions involving leverage, margin, or financing, even if customers do not actually use leverage. The proposal also addresses “actual delivery” under that section and appears to focus on whether customers own or control the assets, rather than relying only on omnibus account book entries. Questions around bankruptcy protection for customer assets remain unresolved. Public comments will be due 60 days after the proposal is published in the Federal Register.
The U.S. Commodity Futures Trading Commission has released an advance notice of proposed rulemaking, or ANPRM, that aims to use the agency’s existing authority to create a market structure framework for crypto spot trading, according to crypto reporter Eleanor Terrett.
The framework would be built on the current registration regime for designated contract markets (DCMs), derivatives clearing organizations (DCOs), and futures commission merchants (FCMs), while adding a new category called “crypto asset markets.”
How the proposal differs from the Clarity Act
A notable difference from the Clarity Act is that the CFTC proposal is exploring a voluntary federal exchange registration path. Spot exchanges that do not offer leverage could choose not to enter the framework and keep their state money transmitter licenses.
Former CFTC Chair J. Christopher Giancarlo said the approach provides exchanges with a “clear, voluntary, one federal rulebook path” when customers trade using borrowed funds. He also said the CFTC is acting within authority granted by Congress in 2010, with support from court rulings that recognized assets such as Bitcoin as commodities.
How lawyers are reading the ANPRM
Several lawyers said the ANPRM reflects a “clever” or “creative” interpretation of Section 2(c)(2)(D) of the Commodity Exchange Act. In their view, it could cover retail crypto spot transactions that involve leverage, margin, or financing, even when the customer does not actually use leverage.
The proposal also addresses “actual delivery” under Section 2(c)(2)(D). It appears to focus on whether customers own or control the assets, rather than relying only on book-entry records in omnibus accounts.
The report added that the proposal still leaves major questions about bankruptcy protection for customer assets. Comments will be due within 60 days after the proposal is published in the Federal Register.
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