WASHINGTON — The Commodity Futures Trading Commission today published an Advanced Notice of Proposed Rulemaking to provide notice of, and seek public comment regarding, its intent to establish a comprehensive regulatory framework comprised of fit-for-purpose rules concerning section 2(c)(2)(D) of the Commodity Exchange Act and retail commodity transactions described thereunder involving crypto assets (such transactions, “CTXs”).

“Today’s action is a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world,” Chairman Michael S. Selig said. “The American people deserve clarity, certainty, and consumer protections in the crypto asset markets and the agency is committed to delivering this by incorporating crypto asset transactions into its uniform national market regulatory framework. The Commission’s announcement begins our process of new rulemakings grounded in the CEA’s purpose and President Trump’s directive to propose a federal crypto asset regulatory market structure using the CFTC’s existing statutory authorities. Under my leadership, the Commission will take every necessary step to establish regulations that are designed to prevent, rather than only prosecute after the fact, fraudulent schemes such as FTX.”

Among other topics, the ANPRM solicits comment on the manners in which the Commission can: (i) prevent abusive practices in crypto asset markets and CTXs under a uniform national regime; (ii) provide market participants with crypto asset-specific contextual information concerning certain requirements and practices that are commonly accepted in the industry and have been found, based on the Commission’s experience in overseeing aspects of crypto asset markets since 2014, to represent industry best practices for compliance with the regulatory requirements that attach to CTXs; and (iii) codify through rulemaking a subcategory of designated contract market registration, known as a crypto asset market, that is purpose-built specifically for CTXs. 

The Commission intends to use the information and comments received to inform potential future agency action, such as a rulemaking, with respect to section 2(c)(2)(D) and CTXs.

Comments must be in writing and received within 60 days of the ANPRM’s publication in the Federal Register. Comments received will be posted on Regulations.gov.