CFTC submits crypto market action for White House review

The CFTC submitted a regulatory action covering crypto asset transactions and markets for White House review. The action is titled "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets." A filing with the Office of Information and Regulatory Affairs says the action was received on Sept. 17. The filing lists the action at the prerule stage. The designation means the action has not been formally proposed. The filing does not disclose details of the planned regulation. The submission came days after the Senate failed to advance the CLARITY Act. The legislation seeks to establish a federal regulatory framework for crypto markets. CFTC Chair Michael Selig said on Sept. 15 that the agency was ready to issue crypto market rules under its existing statutory authority. SEC Chair Paul Atkins said the SEC would move ahead with or without legislation. The CFTC issued a no-action position for providers of passive software the following day. The SEC announced temporary exemptions for certain platforms facilitating onchain trading of tokenized securities. Selig said on Aug. 20 that the CFTC could use its existing authority to establish a crypto asset market regime if the CLARITY Act stalled. Selig said he directed CFTC staff to explore rules for existing registrants and currently unregistered crypto exchanges. Those rules could allow the exchanges to become a type of designated contract market called a crypto asset market. Leveraged or margined crypto trading could be offered under CFTC oversight in that market. Coinbase CEO Brian Armstrong said the SEC and CFTC had the tools to create clear rules under existing authority. Armstrong said he expected the agencies to begin working on the issue in earnest.