The Commodity Futures Trading Commission has moved to advance its own crypto framework using existing authority, just two days after a key digital asset bill failed to clear a Senate procedural vote.
The U.S. Commodity Futures Trading Commission (CFTC) submitted a proposed rulemaking on crypto asset transactions and markets to the White House for review on September 17, signaling the agency is pressing ahead with its own regulatory approach as Congress remains gridlocked on digital asset legislation.
What Was Filed
According to a filing with the Office of Information and Regulatory Affairs (OIRA), which operates under the Office of Management and Budget, the CFTC submitted a rule titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets.” OIRA reviews significant federal regulations before agencies can move toward formal publication.
The CFTC has not disclosed specifics of the proposal, and declined to comment on its contents. Once OIRA’s review wraps up, the rule — possibly with revisions — heads back to the commission for a vote before it can be opened for public comment.
The Senate Vote That Preceded It
The filing lands just two days after the Senate failed to advance the Digital Asset Market CLARITY Act, which would have handed the CFTC a central role in regulating digital commodity markets. The procedural vote came in at 49–50, short of the 60 needed to open debate.
Seven Democratic senators who voted against cloture have signaled talks aren’t dead — meaning the bill could still resurface if a deal comes together.
Had it passed, CLARITY would have carved out clear lanes between regulators: qualifying digital commodities and their spot markets under the CFTC, securities-related crypto activity under the SEC.
CFTC Chair Selig Had Already Been Preparing
CFTC Chairman Michael Selig anticipated this outcome. Back on August 20, he told an agency event he’d directed staff to explore how the CFTC could build a crypto market structure using powers it already holds, rather than waiting on Congress.
Under that framework, both currently registered and unregistered crypto exchanges could potentially be designated as a form of designated contract market — a “crypto asset market” — letting them offer leveraged or margined crypto trading under CFTC oversight.
Notably, Selig remains the sole sitting commissioner on a body meant to hold five members, a vacancy situation that’s persisted since he took office in December 2025. Staffing has also thinned — the agency had roughly 556 employees at the end of fiscal 2025, down from 708 the year prior.
More Moves the Same Day
September 17 was a busy day for U.S. crypto regulation more broadly:
- CFTC staff issued a no-action position shielding certain software developers — those building tools that connect users to regulated derivatives markets — from enforcement over broker-registration requirements, provided they meet 10 specified conditions.
- The SEC released its long-awaited “innovation exemption” for eligible tokenized securities activity, opening a regulatory pathway for certain onchain trading models.
Former CFTC Chairman J. Christopher Giancarlo weighed in after the Senate vote, arguing that regulators don’t need to wait on Congress — Selig and SEC Chair Paul Atkins can lean on authority their agencies already have while lawmakers keep negotiating.
What’s Next
CLARITY Act talks aren’t officially over — the door remains open if the holdout Democrats and sponsors can strike a deal that clears the 60-vote threshold. Sticking points reportedly include ethics provisions tied to elected officials’ crypto holdings (including scrutiny of the Trump family’s crypto businesses) and how much regulatory burden should fall on noncustodial software developers.
For now, all eyes are on OIRA. Once its review concludes, the CFTC’s proposal returns to the commission for a vote, then a public comment period — with a final rule still requiring one more commission vote before taking effect.
