CFTC Opens Consultation on Two Frameworks to Regulate Crypto Transactions and Markets
Key Facts
The U.S. Commodity Futures Trading Commission on October 13, 2026, published an advance notice of proposed rulemaking and opened a comment period on two frameworks to regulate crypto asset transactions and markets. The notice addresses Section 2(c)(2)(D) of the Commodity Exchange Act and is not a final rule in force. The first framework, Regulation CTX, proposes to define covered crypto transactions, while Regulation CAM sets out a regulatory approach for registered platforms and intermediaries that handle those transactions. The request for comment comes as U.S. retail traders in these markets rely primarily on state regulatory protections, according to the commission. Comments are due by December 14, 2026.
CAM does not propose creating a new crypto asset market, but rather an optional subcategory within the designated contract markets registered with the commission. Under the approach outlined in the notice, an exchange that lists only CTX transactions could choose to register in this category and comply with a set of rules designed for it. That makes registration a proposed path for platforms seeking to operate under this framework, not an effective requirement for all platforms. The commission says licensing, supervision and examination requirements vary among states, and that participants have described the multiple frameworks as potentially duplicative and inefficient. The document did not propose eliminating all state licenses, but presented a proposed federal path within the existing system.
The commission’s account of the regulatory landscape rests on the view that most states require money transmitter licenses that generally apply to firms offering crypto asset trading. States such as New York and California have also established licensing regimes specific to these assets. The notice cited a Senate research report that described state frameworks as “49 separate regulatory frameworks.” The commission says these regimes focus on payment risks and do not provide some safeguards associated with financial market regulation. It said state frameworks lack strong rules designed to ensure orderly and transparent trading or to prevent conflicts of interest and market manipulation. This variation places consistency among requirements at the center of the debate over the proposed federal framework.
The commission is seeking participants’ views on the appropriate level of detail for margin requirements in CTX transactions and how they should be adjusted during periods of volatility or market stress. The notice asks whether a more prescriptive approach to these requirements should be adopted. It also considers whether platforms should be allowed to retain integrated operating models that combine listing, trading, settlement and custody. The commission says these models may, in certain circumstances, produce better outcomes for retail customers, regulators and the public interest. The benefits cited in the document include greater transparency and capital efficiency, lower fees and support for market resilience. These questions link the design of platform rules to how risks are managed and services are delivered to traders.
The notice also examines the meaning of “actual delivery” of an asset in transactions executed through on-chain trading protocols. The commission says it preliminarily understands that many of these protocols may settle transactions in a way that results in actual delivery. But it is seeking comment on whether the settlement method meets that standard, and whether possession of wallet keys, governance rights or staking participation affects the assessment. The discussion follows the commission’s withdrawal in December 2025 of its 2020 interpretive guidance on actual delivery for certain retail digital asset transactions, announcing that it would reassess the issue as technology evolves. The notice thus places the limits of delivery and users’ rights among the questions the commission has yet to resolve.
The commission frames the proposal against the expansion of the crypto asset market, which it says has grown since 2009 into an ecosystem supporting trillions of dollars in payments and trading. On the legislative front, Reuters reported that Congress had made no progress on comprehensive cryptocurrency legislation before the commission’s move, increasing pressure on regulators to provide market clarity. Reuters also reported that the proposed category would be subject to requirements including anti-manipulation controls and proof of reserves, with registered futures commission merchants intermediating customer trades. According to the agency, the proposals do not set a specific cap on leverage, but require any leveraged transaction to be presented to commission staff for approval. Reuters warned that the lack of legislation could leave the rules vulnerable to shifts in the political climate or court challenges. The next step in the current process is to receive comments through December 14, 2026.