The Commodity Futures Trading Commission proposed a comprehensive federal rulebook for digital assets today, stepping into a regulatory void left by Congress's three-year failure to pass market structure legislation.
The framework clarifies regulations for crypto commodity spot markets, an area the CFTC has long claimed jurisdiction over. It outlines requirements for exchanges, custodians, and clearinghouses, with standards for customer protection, market integrity, and financial stability. CFTC Chair Rostin Behnam has pushed for a clear regulatory path, arguing that current gaps expose consumers to risk.
Separately, the Treasury Department rescinded its proposed reporting rules for transactions involving self-hosted crypto wallets and mixers. The reversal followed backlash from privacy advocates, industry leaders, and a bipartisan group of lawmakers who said the rules were overly broad and impractical. Treasury Secretary Janet Yellen said the department listened to public feedback and recognized the need for a more targeted approach. The initial proposal would have required financial institutions to report personal information for transactions exceeding $10,000.
The Treasury also announced sanctions against five parties tied to fundraising for Hamas. The Office of Foreign Assets Control identified specific individuals and financial networks operating in the Middle East accused of facilitating transactions to support the designated terrorist organization. The sanctions aim to disrupt illicit finance networks.
The CFTC's move reflects a broader shift: federal agencies acting unilaterally when Congress deadlocks. Industry stakeholders will scrutinize the proposal during a 60-day public comment period. A final decision is expected by early next year.
