The Commodities and Futures Trading Commission (CFTC) is trying to move ahead with its own set of rules for crypto markets after the Senate failed to pass the Clarity Act earlier this week.
The CFTC submitted a new proposal to the White House Office of Management and Budget (OMB) on Thursday. Details were not disclosed. It is unclear which crypto assets it covers, what exchanges would need to do to qualify, what restrictions would apply or how far the CFTC believes its authority extends.
Once the OMB reviews the draft, it will return to the CFTC for a vote and public comment. It would then need another vote to become effective.
The submission comes after the Securities and Exchange Commission (SEC) on Thursday issued an “innovation exemption” that gives qualifying platforms a five-year path to offer onchain trading of certain tokenized stocks without registering as securities exchanges.
Both the CFTC and SEC have vowed to continue working together to provide the crypto industry with clearer rules under their existing authority after the Clarity Act failed to pass.
“The CFTC is locked in and ready to ship its rules for the new frontier of finance,” CFTC chair Mike Selig wrote in a post on X following the vote on Wednesday.
The CFTC, on Friday, also published a no-action letter, giving certain software providers a way to connect users to regulated derivatives markets without registering as introducing brokers. It covers passive software that lets users view markets and submit orders directly to registered firms, including through crypto wallets.
Providers can market specific contracts and receive transaction-based fees, but they cannot hold customer assets, generate buy or sell signals or control how orders are routed or executed, according to the letter.
The relief comes with conditions, including risk disclosures, recordkeeping and compliance with marketing rules. It remains in place until the CFTC adopts rules or guidance addressing registration requirements for software developers.