The CFTC launched a consultation on October 5 on a federal framework for retail crypto transactions with leverage or margin. For its part, the SEC is moving forward on the conservation of digital assets and tokenization. Washington thus seeks to attract innovation and capital, even if Congress retains the final say on part of this architecture.
In brief
- On October 5, the CFTC launched a consultation on Regulation CTX and Regulation CAM, two texts dedicated to crypto transactions by individuals.
- The project provides for a category of federally registered exchanges, with proof of reserves and intermediation by brokers.
- At the SEC, an October 1 proposal would allow, under conditions, self-custody for certain regulated advisors and funds.
CFTC paves the way for a federal market
The movement comes as Donald Trump urges the Senate to move forward on the CLARITY Act, particularly in the face of international competition.
On October 5, the CFTC therefore launched a public consultation on a national framework for retail crypto transactions with leverage, margin or financing.
Two texts are concerned. Regulation CTX would define the covered transactions, while Regulation CAM would create a new category of platforms registered with the CFTC, called “crypto asset markets”.
These exchanges should in particular prove their reserves and place orders from individuals through registered brokers. For Michael Selig, president of the CFTC, this system would offer a federal option, without imposing its adoption on all players.
“ For years, entrepreneurs in this new frontier of finance doubted whether a place would be reserved for them in our markets. We give them an answer “, he said. On the other hand, making federal registration mandatory would require legislation.
SEC moves forward on crypto custody
For its part, the SEC is working on another key point: the custody of digital assets by regulated advisors and funds. His project notably provides for self-preservation under certain conditions, while recognizing state trust companies as depositaries.
On October 1, Paul Atkins, president of the SEC, indicated that other proposals would follow. The stated objective consists in particular of preventing onchain markets from developing further abroad.
Furthermore, several initiatives have already marked the year. In August, Regulation Crypto Assets proposed an exemption for certain investment offerings, while on September 17, the Innovation Exemption introduced a temporary regime for platforms offering tokenized stocks.
Safeguards before a possible law
The CFTC also wants to strengthen controls. His project notably provides for proof of reserves for exchanges that hold pooled customer funds, measures against manipulation and the intervention of future commission merchants, with the resulting anti-money laundering obligations.
Another notable point: a transfer to a non-custodial wallet within 28 days could constitute effective delivery, without the obligation to go through a registered platform.
At the same time, the SEC continues to move forward on crypto products. In particular, it paved the way for Bitcoin and Ether ETPs with 3x leverage.
However, the American regulatory architecture remains incomplete. Consultations continue, generally for 60 days after publication in the Federal Register. Above all, the CLARITY Act is still awaiting its vote in the Senate.
Without intervention from Congress, regulators will therefore have to continue to move forward within the limits of their current powers. Meanwhile, the US race for crypto leadership continues.
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