CFTC submits crypto market framework for White House review

The Commodity Futures Trading Commission has sent a proposed framework for crypto transactions and markets to the White House for review, moving ahead with rulemaking days after the CLARITY Act failed to advance in the Senate.

According to a filing with the Office of Information and Regulatory Affairs, the CFTC submitted a rule titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” on Sept. 17. OIRA, which sits within the Office of Management and Budget, reviews significant federal regulations before agencies can move toward publication.

Details of the proposal have not been released, and the CFTC declined to comment on its contents. The filing begins an executive review process that could result in changes before the measure is returned to the commission.

CFTC Chairman Michael Selig had already instructed staff to prepare a crypto market structure framework that could operate under the agency’s existing authority if Congress failed to pass new legislation.

CFTC crypto rules move forward after Senate vote

The filing came two days after the Senate failed to advance the Digital Asset Market CLARITY Act, which would have given the CFTC a central role in regulating digital commodity markets.

The procedural vote ended 49 to 50, falling short of the 60 votes needed to begin debate. Seven Senate Democrats who opposed cloture have since indicated that negotiations could continue, leaving the legislation unresolved following the vote.

As crypto.news previously reported, the failure to advance the bill left the SEC and CFTC with a larger role in developing digital asset rules through their existing statutory powers while Congress remains divided over a federal market structure law.

The CLARITY Act would establish statutory divisions between the SEC and CFTC and create registration requirements for crypto trading platforms and other market participants. Qualifying digital commodities and their spot markets would fall primarily under CFTC oversight, while securities related activity would remain within the SEC’s jurisdiction.

Selig had prepared for the possibility that Congress would not complete the legislation. Speaking at an agency event on Aug. 20, he said he had directed staff to examine how the CFTC could “codify a CFTC market structure for crypto assets” through powers it already holds.

Under the framework described by Selig at the time, existing CFTC registrants and crypto exchanges that are not currently registered could potentially be designated as a form of designated contract market known as a crypto asset market.

“This could enable current registrants as well as non-registrant crypto exchanges to be designated by the CFTC” as crypto asset markets, Selig said.

Such venues could then offer leveraged or margined crypto trading under rules administered by the CFTC.

Selig’s August comments had made clear that the agency was preparing crypto rules before the Senate vote. He said the CFTC would use its existing authority to establish a digital asset market regime if the legislation remained stalled.

White House review comes before a CFTC vote

OIRA review represents an early stage of the federal rulemaking process and does not make the proposed framework effective.

Under the Trump administration, independent agencies including the CFTC and Securities and Exchange Commission have been required to submit significant regulatory actions to the Office of Management and Budget for review before publication.

Once OIRA completes its review, the proposal can be returned to the CFTC with potential revisions. The commission would then have to vote before releasing the proposal for public comment.

Selig is currently the sole commissioner on a body designed to have five members. The vacancies leave him as the only vote at the commission while the agency works through its crypto agenda.

The staffing issue predates the latest proposal. The CFTC operated with roughly 556 employees at the end of fiscal 2025, compared with 708 a year earlier, while Selig has remained the only confirmed commissioner since taking office in December 2025.

Following publication of the proposal, the agency would collect public comments and could revise the framework based on feedback. A final rule would require another commission vote before taking effect.

CFTC uses existing powers as CLARITY talks continue

The White House submission forms part of a series of regulatory steps taken by federal agencies following the Senate vote.

On Sept. 17, CFTC staff issued a no action position covering certain software developers whose products facilitate access to regulated derivatives markets. The relief means staff will not recommend enforcement action against qualifying passive software providers for failing to register as introducing brokers when they meet specified conditions.

Under the CFTC developer relief, qualifying providers must satisfy 10 conditions. Their software can connect users to registered derivatives exchanges, brokers and futures commission merchants without triggering an enforcement recommendation over certain registration requirements.

The treatment of developers has been one of the issues surrounding federal crypto market structure legislation. Sections of the CLARITY Act sought protections for noncustodial software developers, wallet providers and validator operators under specified conditions.

The SEC has been moving through its own crypto rulemaking agenda. On Sept. 17, the securities regulator released its long anticipated innovation exemption for eligible tokenized securities activity, providing a regulatory route for certain onchain trading models.

Former CFTC Chairman J. Christopher Giancarlo said after the Senate vote that regulators did not need to wait for Congress to continue developing digital asset frameworks. He said Selig and SEC Chairman Paul Atkins could use authority already available to their agencies while lawmakers continued debating legislation.

The comments followed the CLARITY Act vote and came as both agencies pursued separate measures affecting crypto exchanges, developers and tokenized markets.

CLARITY Act negotiations remain open

The Senate setback has not formally ended work on the CLARITY Act.

Seven Democratic senators who voted against cloture said after the vote that negotiations were not over. The measure could return if lawmakers reach an agreement capable of securing the 60 votes required to advance legislation in the Senate.

Ethics provisions involving elected officials and digital asset interests were among the disputed areas during negotiations. Democratic lawmakers had raised concerns about President Donald Trump’s crypto holdings and businesses linked to his family as the administration pursued new digital asset rules.

Developer protections have been another point of contention during negotiations, with lawmakers debating the extent to which people who write or maintain noncustodial software should face financial regulatory requirements.

The bill would establish a federal market structure covering token classification, trading platforms and regulatory responsibilities between the CFTC and SEC. Its House version passed in July 2025 before the legislation moved through the Senate process.

For now, the CFTC proposal remains under White House review. Once OIRA completes that process, the measure can return to the commission for a vote, followed by publication and a public comment period before any final rule can take effect.