The Commodity Futures Trading Commission (CFTC) has sent a regulatory proposal to the White House, seeking to establish new rules for crypto transactions and markets. This move comes in the wake of the Senate’s recent decision to block the Clarity Act, a long-anticipated legislative effort aimed at clarifying the regulatory landscape for digital assets.
CFTC pushes forward amid legislative setbacks
Details of the proposal remain undisclosed at this stage, according to the Office of Management and Budget. Officially titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,” the plan seeks to provide a framework for overseeing the trading of digital assets in the United States.
The Clarity Act, which was halted in the Senate earlier this week, aimed to clearly delineate which US agencies have authority over different types of crypto assets, distinguishing between securities, commodities, and stablecoins. Despite the legislative roadblock, both the CFTC and the Securities and Exchange Commission (SEC) have affirmed their intention to continue developing regulations for the cryptocurrency sector.
CFTC Chair Mike Selig, who was confirmed by senators last year and previously served as chief counsel at the SEC’s Crypto Task Force, stated that the result of the Senate vote would not deter the agency’s regulatory efforts. He wrote on X that the CFTC is “locked in and ready to ship its rules for the new frontier of finance.”
The outcome of yesterday’s Senate vote was unfortunate, but the CFTC remains committed to delivering its rules for the new frontier of finance, according to Chair Mike Selig.
Selig has reiterated in recent days that the agency intends to finalize its crypto regulations within President Trump’s current term, regardless of whether legislation moves forward in Congress.
Mini dictionary: CFTC (Commodity Futures Trading Commission) is the US federal agency responsible for regulating derivatives markets, including futures, swaps, and certain types of digital assets that fall under the “commodity” category.
Political tensions and conflict of interest concerns
President Trump has campaigned on a pro-crypto platform, pledging to support digital asset innovation after regulators under the previous administration filed lawsuits against, and investigated, companies for allegedly selling unregistered securities. Since Trump took office, both the SEC and the CFTC have reportedly adopted a more constructive stance toward the digital asset industry.
Ethics concerns have surfaced during the legislative debate, with some lawmakers raising questions about potential conflicts of interest due to Trump’s family involvement in digital asset ventures. The White House has consistently denied allegations of wrongdoing. In response, a revised draft of the Clarity Act began circulating in July, including language to ban officials from benefiting financially from crypto-related activities. However, some critics, especially among Democrats, argue that the measures remain insufficient.
Regulatory advancements by the SEC
Meanwhile, the SEC has also moved forward in defining its approach to digital assets. Earlier this week, the agency approved trading of tokenized stocks and, in August, introduced a new framework for how crypto assets may be offered in the US—a sign that the regulator is continuing to act independently of the legislative process.
The SEC has made progress on both tokenized stock approvals and its own crypto rules, indicating regulatory momentum despite the absence of new laws.
The future of US crypto regulation
The core objective of the Clarity Act is to clarify regulatory responsibility for digital assets, a role now being pursued directly by the agencies. While both the CFTC and SEC are moving ahead, public details on the scope and specifics of the new CFTC proposal remain limited. The outcome is likely to influence the US digital asset industry’s direction as lawmakers and regulators balance innovation with oversight.
