JUST IN: CFTC Chairman Michael Selig published a new op-ed sharing that the agency is moving ahead with a proposal for i | Hanami
JUST IN: CFTC Chairman Michael Selig published a new op-ed sharing that the agency is moving ahead with a proposal for its own frameworks for crypto markets, despite the Clarity Act failing to advance.
The CFTC is proposing two new rulemaking frameworks:
The big takeaway: Selig says CFTC-registered exchanges would have a federal path to offer trading in crypto assets under rules designed specifically for crypto, rather than forcing exchanges into the legacy securities frameworks.
Those federally regulated venues could also allow retail customers to trade on a margined, leveraged or financed basis. This is something state-licensed crypto exchanges cannot currently offer under the framework, Selig explained.
It’s also important to note, Selig isn’t saying every crypto asset must move onto a CFTC-registered platform since the agency doesn’t have that authority without Congress.
His argument is essentially that the U.S. waited too long for legislation, so regulators are using the authority they already have to start filling the gaps and this is one of the first steps it’s taking to do that.
“Today’s action is just the beginning. The CFTC is starting the process of addressing gaps in crypto-asset market structure and creating clear rules of the road for innovators and market participants,” Selig said.
“We haven’t solved every problem, nor can agency action substitute indefinitely for a statutory framework passed by Congress, but we must do what we can.”