After the CLARITY Act failed<\/a> in a Senate procedural vote in September, the CFTC quickly introduced two new proposals to regulate\u00a0cryptocurrencies. Selig describes these proposals as a \u201cfederal option\u201d for crypto exchanges. But how far can the CFTC go before it requires congressional approval, and what aspects still need new laws?<\/p>\n What the CFTC\u2019s Two Proposed Crypto Rules Would Do<\/p>\n The Commodity Exchange Act established the CFTC and limits the agency\u2019s rulemaking authority to the powers it grants. A CFTC rule has the force of law within those constraints, but any extension beyond them would require Congress to enact new legislation.<\/p>\n The first proposal, titled Regulation Crypto Asset Transactions, focuses on retail customers who trade cryptocurrencies using borrowed funds. This applies to futures commission merchants, firms that hold customer funds for futures trading. The second proposal, Regulation Crypto Asset Markets, explains how crypto platforms can register as a new type of federally regulated exchange. Notably, these proposals mention Bitcoin (CRYPTO: BTC<\/a>) and XRP (CRYPTO: XRP<\/a>) as among the covered digital assets.<\/p>\n The CFTC\u00a0submitted these rules <\/a>to the White House<\/a> for review on September 17. Once the rules are published in the Federal Register, the public will have 60 days to comment. After considering the feedback, the CFTC can revise the proposals and must hold another vote before any rules go into effect.<\/p>\n Why the CFTC Can\u2019t Make Every Crypto Exchange Register<\/p>\n In an op-ed published on October 5<\/a>, Selig clarified that the CFTC cannot require crypto to trade exclusively on federally registered platforms without congressional approval. This means exchanges that only facilitate spot trading\u2014where customers buy cryptocurrencies outright using their own money\u2014do not have to register with the federal agency and can continue operating under state licenses.<\/p>\n However, exchanges that want to offer retail customers leveraged or margined trading will need to register under the new category. This creates a split in the U.S. crypto market: customers using registered platforms will benefit from federal protections against market manipulation, conflicts of interest, and better fund protections, while those on unregistered platforms will rely solely on state regulations.<\/p>\n CFTC Crypto Rules Could Still Change Before They Take Effect<\/p>\n A proposal is not a final rule. The CFTC can revise its proposals based on public comments, and it has not yet set a timeline for final adoption. Furthermore, a future administration could reassess these rules, as an agency can change its own regulations, while only Congress can amend a law.<\/p>\n![\"An](\"https:\/\/www.europesays.com\/unitedstates\/wp-content\/uploads\/2026\/10\/imageforentry29-exr.jpg\")
Drew Angerer \/ Getty Images<\/p>\n![\"A](\"https:\/\/www.europesays.com\/unitedstates\/wp-content\/uploads\/2026\/10\/shutterstock-1976930807-huge-licensed-scaled.jpg\")
Maksim Safaniuk \/ Shutterstock.com<\/p>\n