- CFTC Chairman Michael Selig named BTC, ETH, SOL, XLM, XTZ and XRP as examples of digital commodities.
- Proposed CFTC rules would establish a framework for leveraged crypto trading, customer safeguards and exchange registration.
- Selig said developers publishing software without controlling trades or customer assets should not need broker registration.
CFTC Chairman Michael Selig outlined proposed rules for U.S. crypto markets at the Fordham Law Blockchain Regulatory Symposium in New York. His remarks covered Regulation CTX and Regulation CAM, customer safeguards, onchain delivery and developers. Selig cited BTC, ETH, SOL, XLM, XTZ and XRP as examples of digital commodities.
CFTC Plans Rules for Leveraged Crypto Trading
The CFTC proposals target exchanges offering retail customers crypto trading with margin, leverage or financing. Selig called these transactions CTXs and placed them within a three-rung framework.
Rung 1 covers ordinary spot exchanges, Rung 2 covers leveraged crypto trading, and Rung 3 covers perps and other derivatives. Under Regulation CAM, exchanges offering only CTXs could seek registration as crypto asset markets.
Designated contract markets could also offer CTXs under tailored rules. The framework would require futures commission merchant intermediation for covered retail transactions. FCMs would handle customer accounts and funds under customer protection rules.
Those requirements include disclosures, capital standards, asset segregation and anti-money laundering obligations. The CFTC also proposed proof-of-reserves requirements for certain exchanges holding customer property.
CFTC Names Six Digital Commodity Examples
Selig discussed the joint CFTC and SEC crypto asset taxonomy. It divides crypto assets into digital commodities, digital collectibles, digital tools, stablecoins and digital securities.
The taxonomy lists Bitcoin, Ether, Solana, Stellar Lumens, Tezos and XRP as examples of digital commodities. Selig said the first three categories generally are not securities.
He also said the CFTC proposes to clarify the actual delivery exception for CTXs. Moving crypto assets to an external, non-custodial wallet within 28 days would generally satisfy that exception.
Selig Outlines Path for Onchain Developers
Selig said the CFTC is exploring policy for developers who only publish software. The policy would cover developers who do not solicit orders, control execution or hold customer assets.
He said developers should not need introducing broker registration simply because they publish code. CFTC staff is also engaging with builders to examine onchain venues and where control exists. The proposals followed Congress’s failure to send the Clarity Act to President Trump.
