CFTC Moves to Build a Federal Guardrail for Crypto Markets The U.S. Commodity Futures Trading Commission (@CFTC) is pushing ahead with its most ambitious effort yet to regulate digital asset
The U.S. Commodity Futures Trading Commission (@CFTC) is pushing ahead with its most ambitious effort yet to regulate digital asset trading. On October 5, 2026, the agency released an advance notice of proposed rulemaking covering two new frameworks: Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM). The proposals would establish a federal registration pathway for crypto exchanges, particularly those offering retail customers the ability to trade on margin, leverage, or financing.
The move comes after the U.S. Senate failed to pass the CLARITY Act, the sweeping congressional bill that would have imposed a broader crypto market structure. With legislation stalled, @ChairmanSelig said the agency will act using its existing statutory powers. CFTC Chairman Michael Selig said the agency will move ahead with crypto market regulations after Congress failed to advance legislation that would have established a broader framework for digital assets.
The proposed rules contemplate the required intermediation of registered exchanges by a futures commission merchant (FCM). Those FCMs would manage customer accounts and funds, subject to customer protection requirements including capital requirements and customer property segregation. The emphasis on segregated accounts is deliberate: it is widely seen as the structural safeguard that FTX lacked before its collapse in November 2022.
"Four years ago, we saw the collapse of Sam Bankman-Fried's FTX, where he stole over $8 billion in customer funds. That can't happen under our regime," Selig said, noting that FTX's CFTC-registered subsidiary kept all customer funds safe and segregated throughout the bankruptcy.
Selig pointed out that critics opposing relevant measures and supporting the status quo may objectively benefit fraudsters, manipulators, and those misappropriating customer funds, warning that the lack of appropriate regulation could leave opportunities for the next figure similar to Sam Bankman-Fried.
Selig said the framework would give crypto exchanges the option of operating under a single federal market-regulatory regime, and criticized the previous approach, arguing the CFTC and SEC relied too heavily on enforcement rather than creating rules tailored to crypto markets. The new framework is designed to end that era of litigation-driven oversight and replace it with proactive, rules-based supervision.
Selig added that some exchanges may choose to remain under state regimes, while others will register federally. Exchanges that do not offer leverage could stay under state licenses. The CFTC has opened a 60-day public comment period on the proposals. Selig noted that "Today's action is just the beginning."
Sources:Bitcoin Magazine: CFTC Chair Says New Crypto Rulemaking Will Prevent Another FTX-Style CollapseFenwick: CFTC Previews Regulation CTX and CAMBenzinga: CLARITY Act Failure Spurs New CFTC Crypto Rules
