CFTC proposes new crypto rules after failed CLARITY vote

The U.S. Commodity Futures Trading Commission is moving ahead with new crypto regulatory proposals after Congress failed to advance the CLARITY Act, which would have expanded the agency’s authority over digital assets. CFTC Chair Michael Selig said the agency is acting under its existing legal powers and will pursue crypto oversight with or without new legislation. Speaking at a blockchain regulatory symposium in New York, he outlined plans that would let crypto firms register under a federal framework instead of navigating a patchwork of state rules. The proposals include a new category for certain exchanges called a crypto asset market, along with a separate rule set for retail trading that uses leverage, margin, or financing. Selig said ordinary spot exchanges would remain mostly under state oversight, though the CFTC would still enforce antifraud and antimanipulation rules for spot crypto trading. The Securities and Exchange Commission has also moved to draft its own crypto rules, suggesting both agencies are preparing to regulate the sector even without fresh congressional action. The article notes that both agencies are still short on commissioners as these proposals move forward.