The U.S. Commodity Futures Trading Commission has opened a consultation on two crypto regulatory frameworks, Regulation CTX and Regulation CAM, with written comments due within 60 days of publication in the Federal Register. The agency seeks feedback on rules governing leveraged, margined, or financed retail crypto transactions. Regulation CAM would establish a crypto-specific category within the agency’s designated contract market registration system. Chair Michael Selig stated that mandatory registration for all crypto exchanges would require congressional action. The consultation follows a September 17 White House submission and the Senate’s failed CLARITY Act vote. On October 5, the CFTC announced that its advance notice of proposed rulemaking requests public input on a federal framework under Section 2(c)(2)(D) of the Commodity Exchange Act. The notice concerns retail commodity transactions involving crypto assets, which the agency refers to as crypto asset transactions, or CTXs. Comments are due within 60 days of the notice’s Federal Register publication and will be posted on Regulations.gov. In an October 5 opinion article, CFTC Chair Michael Selig described Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets as frameworks that would set requirements for registered exchanges offering crypto trading. He characterized the proposal as an option for firms seeking a single federal market regulator. Participating exchanges could offer retail customers margined, leveraged, or financed crypto trading, activities Selig distinguished from ordinary spot transactions on state-licensed platforms. Regarding compulsory registration, Selig wrote: “We don’t have the authority to impose such a requirement without congressional action.” He noted that agency rules could address gaps in crypto market structure but could not indefinitely replace a framework enacted by Congress. Selig contrasted state money-transmitter laws, designed for payment services, with federal trading rules that address manipulation, conflicts of interest, orderly markets, and customer funds. Using FTX as an example, he noted that its founders misappropriated approximately $8 billion in customer money. He contrasted the bankrupt offshore and state-regulated entities with FTX’s CFTC-registered subsidiary, where he said customer property remained segregated and secure. At Fordham Law’s Blockchain Regulatory Symposium on October 5, Selig explained how registration would work for different trading platforms. For exchanges already registered as designated contract markets, tailored rules could allow CTX trading. Firms seeking to offer only CTXs could pursue ordinary designated contract market registration or the proposed crypto asset market category, known as CAM. Under Selig’s description, CAM exchanges would follow statutory designated contract market core principles through regulations adapted to crypto transactions. Exchanges offering futures, options, or swaps would remain subject to the existing designated contract market framework. For American customers, Selig said the model would identify platform protections. He described ordinary spot exchanges as generally subject to state money-transmission laws and CFTC fraud and manipulation powers. In discussing listing safeguards, Selig identified token distribution, concentrated holdings, lockups, vesting schedules, programmed issuance, and buybacks as factors relevant to manipulation risks. He also noted that the contemplated rules include a proof-of-reserves obligation for exchanges holding customer property in pooled accounts. Through the consultation, the CFTC is asking how a national regime could prevent abusive practices in crypto markets. The commission also seeks views on crypto-specific information that would help participants comply with requirements attached to CTXs. Drawing on its oversight experience since 2014, the agency said it wants input on industry practices it has found useful for regulatory compliance. A separate part of the notice asks how to establish the CAM registration subcategory through rulemaking. The initiative had already entered executive review last month. On September 17, the CFTC submitted its framework to the White House Office of Information and Regulatory Affairs. Earlier coverage on August 20 described the agency’s planned crypto rules as work that could proceed under existing powers even if lawmakers failed to pass market structure legislation. The report distinguished the CFTC’s derivatives oversight and spot-market enforcement powers from the full spot-exchange supervision contemplated by the CLARITY Act. On September 16, the outlet reported that senators rejected cloture on the motion to proceed to H.R. 3633 by 49 votes to 50. The motion required 60 votes; senators did not hold a final passage vote. The bill would divide digital-asset responsibilities between the SEC and CFTC and establish registration routes for exchanges, brokers, and dealers. Former CFTC Chair J. Christopher Giancarlo told journalist Eleanor Terrett on September 16 that both regulators could continue developing frameworks under their current authority. Following the vote, House Financial Services Committee Chair French Hill and House Agriculture Committee Chair Glenn Thompson supported agency action under existing law, while saying Congress alone could provide lasting statutory certainty. The same coverage reported that Senator Thom Tillis changed his vote to preserve the ability to seek reconsideration, leaving the House-passed legislation on the Senate calendar.