On Thursday, the Commodity Futures Trading Commission submitted a proposal to the White House aimed at overseeing cryptocurrency markets and transactions.
The specific details of these regulations remain unclear based on the notification posted on the Office of Management and Budget portal. The proposal is entitled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets.”
This action by the CFTC follows the decision by lawmakers on Tuesday to block the long-anticipated Clarity Act crypto legislation. Even though the bill failed to progress, both the CFTC and the Securities and Exchange Commission declared they would move forward with establishing crypto rules independently.
CFTC Chairman Mike Selig stated on Wednesday that despite the setback for the Clarity Act, the agency would continue assisting U.S. President Trump in fulfilling his regulatory agenda for the cryptocurrency sector.
“The outcome of yesterday’s Senate vote was unfortunate,” Selig posted on X, adding that the CFTC remained “locked in and ready to ship its rules for the new frontier of finance.”
Prior to the procedural vote on the bill earlier in the week, Selig had indicated that rulemaking would proceed regardless of whether the Clarity Act became law, with the objective of completing the regulations before the current administration’s term concludes.
Senators confirmed Selig as the head of the regulatory body last year. Having previously served as chief counsel for the SEC’s Crypto Task Force, Selig was characterized by White House Crypto and AI Tsar David Sacks as “instrumental in driving forward the President’s crypto agenda.”
During his campaign, President Trump pledged to support the digital asset industry after regulatory bodies under the prior administration targeted crypto firms with lawsuits, primarily over the alleged sale of unregistered securities.
Ever since Trump took office, the SEC and CFTC have adopted a much more accommodating stance toward overseeing the industry.
The CFTC is not the sole regulator advancing with new regulations; earlier in the week, the SEC authorized the trading of tokenized equities. Additionally, in August, the SEC put forward its own framework governing crypto asset offerings, pushing ahead while the major legislation stalled.
Last month, President Trump urged legislators to approve the Clarity Act, describing the measure as “very powerful,” whereas Republicans asserted that Democrats were intentionally obstructing it.
Democrats primarily raised objections concerning the ethics provisions within the bill. Trump secured backing from prominent figures in the industry during his campaign, and since assuming the presidency, members of his family have generated income from digital asset projects.
Certain lawmakers have raised concerns about potential conflicts of interest, though the White House has consistently denied any improper conduct.
A revised version of the legislation began circulating in July to address ethical concerns by prohibiting officials from profiting from cryptocurrency. Nonetheless, some Democrats argued that the measures did not go far enough.
The Clarity Act seeks to formally divide jurisdiction among regulatory bodies, clearly defining which digital assets qualify as securities, commodities, or stablecoins.
Originally published at https://bitcoinmagazine.com/news/cftc-proposes-rules-following-clarity-fail.
