CFTC Files Crypto Market Regulations With White House After Senate Setback

The Commodity Futures Trading Commission sent a crypto market regulatory action to the White House on Sept. 17, two days after the Senate failed to advance the CLARITY Act. The Office of Information and Regulatory Affairs now lists “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,” RIN 3038-AF80, as pending review, marking the clearest formal step yet in Chairman Michael Selig’s plan to pursue crypto rules under the CFTC’s existing authority.

The filing matters because Congress has not yet provided the broader statutory framework sought through H.R. 3633, leaving federal regulators to work within powers they already possess. OIRA classifies the CFTC action at the prerule stage, with no legal deadline for completing review, and the underlying text remains undisclosed. That means the Sept. 17 submission starts an executive review process rather than putting new crypto trading rules into effect.

CFTC News: White House Review Starts

The Office of Information and Regulatory Affairs received the CFTC filing on Sept. 17. Its public docket lists the action as “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” under RIN 3038-AF80.

OIRA also classifies the action at the prerule stage and shows no legal deadline for completing the review. The public record gives no target date for the review.

The filing does not disclose the proposed text or the markets that the CFTC plans to cover. OIRA sits within the Office of Management and Budget and reviews federal regulatory actions before publication.

A February 2025 executive order requires independent agencies to submit covered proposed and final regulatory actions to OIRA before publication in the Federal Register. That requirement places the White House review before the agency can release qualifying proposals.

Senate Setback Shifts Focus to Existing Authority

The CFTC submission follows the Senate’s Sept. 15 procedural vote on H.R. 3633, the Digital Asset Market Clarity Act. Senators voted 49-50 on cloture for the motion to proceed, short of the three-fifths threshold. The failed vote stopped the Senate from moving to debate at that stage, but it did not represent a final vote on the bill.

The CLARITY Act would create a framework for digital commodities and divide regulatory responsibilities between the CFTC and Securities and Exchange Commission. The crypto regulation also addresses trading platforms and digital commodity activity.

Seven Democratic senators who opposed cloture said the next day that they remained committed to bipartisan negotiations. Congress has not scheduled another Senate vote on the measure.

Crypto Asset Market Model Takes Shape

CFTC Chair Selig outlined the CFTC’s alternative path during an Innovation Advisory Committee meeting on Aug. 20. He said he had directed staff to explore rules that could codify a crypto asset market structure using powers already granted to the agency under the Commodity Exchange Act.

His remarks anticipated agency action if Congress failed to complete market-structure legislation.

Under the approach Selig described, the CFTC could allow current registrants and some unregistered crypto exchanges to seek designation as a designated contract market, specifically a crypto asset market.

Those venues could offer leveraged or margined crypto trading under CFTC rules. Selig also directed staff to examine legal pathways for developers of onchain finance protocols.

CFTC Vote and Public Comment Come Next

OIRA review starts an executive review process rather than putting the framework into force. The office can work with the agency on changes before returning the proposal to the CFTC.

The commission would then need to vote before publishing the proposed rule and opening a public comment period. Market participants could submit feedback during that stage before it considers a final version.

Selig currently serves as the only listed CFTC commissioner, although federal law provides for a five-member commission. The agency’s commissioner page lists only Selig, who took office in December 2025. After public comments, the CFTC could revise the proposal and would need another commission vote before adopting a final rule.

The filing also comes as the CFTC takes other crypto-related steps under existing law. On Sept. 17, staff issued no-action relief for qualifying passive software providers that connect users with registered derivatives venues and intermediaries. The SEC is also pursuing separate crypto and tokenized-market measures while Congress continues work on broader market structure legislation.

This article is for informational purposes only and does not constitute legal, financial or investment advice. Regulatory proposals can change during executive review, public comment and final rulemaking.