The U.S. Commodity Futures Trading Commission (CFTC) is proposing two new rules to govern trading of crypto that is leveraged, margined or financed, and the move comes alongside similar efforts from the SEC — though the CFTC still cannot touch spot markets, the direct trading of crypto where assets change hands at current market prices without leverage or margin.
The proposals establish a new type of exchange registration called crypto asset markets, or CAMs. CAMs would be a narrow form of the existing designated contract markets, or DCMs, which are the CFTC-regulated exchanges. The proposals will be open for public-comment periods.
The effort leaves a gap because the CFTC lacks authority to oversee spot markets. That gap was at the core of the Digital Asset Market Clarity Act, which stalled in the U.S. Senate last month.
CAMs and DCMs
CAMs would be an option for exchanges, similar to tailored charters available in the regulated banking sector. They would sit within the Commodity Exchange Act’s retail-trading elements established under the 2010 Dodd-Frank Act, which was meant to further protect consumers after the 2008 economic meltdown.
Major platforms already registered as DCMs include Coinbase, Crypto.com, Bitnomial, Kalshi and Polymarket. Exchanges keeping customer assets in omnibus accounts would face “proof-of-reserves” demands under the new proposals.
The proposals are meant to answer regulatory uncertainty left by the absence of a crypto market structure law from Congress. CFTC Chairman Mike Selig said in remarks:
“Today, the CFTC is doing its part to deliver clear rules of the road for crypto asset markets… These rules would codify a pathway for crypto asset exchanges to operate under uniform national oversight by the CFTC pursuant to the same statutory authorities that the prior administration instead utilized to regulate by enforcement.”
The SEC’s Parallel Push
The SEC has moved ahead with its own crypto proposals. Late last week, it put forward a rule on how investment firms should maintain custody of crypto assets. It also cleared an exemption for securities tokenization.
Both agencies are currently led by only Republican commissioners, with no nominees from President Donald Trump to fill each five-member commission. The SEC is chaired by Paul Atkins and Commissioner Mark Uyeda; the CFTC by Chairman Mike Selig, who has been the sole commissioner for nearly a year.
Earlier this year, the two agencies issued a token taxonomy defining how they would characterize assets falling under each agency’s authority.
The Spot-Market Problem
The CFTC can regulate leveraged, margined and financed crypto trading, but it cannot touch spot markets. That is the gap the Digital Asset Market Clarity Act tried to close.
Spot trading is direct trading of crypto where assets change hands at current market prices without leverage or margin. The CFTC has no authority over it.
Selig’s Plan
Chairman Selig wants to further cement earlier staff guidance on crypto matters, officials said. The proposals would be open for public-comment periods.
The CFTC’s approach is to deliver clear rules of the road, as Selig put it.
The Political Context
Both agencies are operating with only Republican commissioners. Trump has not nominated anyone else to fill the remaining seats on each five-member commission.
The agencies are moving forward without full staffing, and both are working on the same problem from different angles.
The Public Comment Test
The proposals are a step toward uniform national oversight, as Selig described it. They would be open for public-comment periods.
The gap remains. The CFTC can regulate leveraged, margined and financed crypto through CAMs. The SEC is regulating investment firm custody and tokenization through its own proposals.
The public-comment periods will test whether the industry agrees with the direction the agencies have set. The spot gap will remain unresolved until Congress acts.
The CFTC and SEC are filling a regulatory void themselves. The gap between them is real, but the movement is in the same direction: clearer rules for crypto asset markets.
Comparison of the Two Regulators
| Agency | Chair | Key Role |
|---|---|---|
| CFTC | Mike Selig | Regulates leveraged, margined and financed crypto through CAMs |
| SEC | Paul Atkins | Regulates investment firm custody and tokenization |
The comparison shows where the two agencies overlap and where they diverge. The CFTC is focused on leveraged and margin-dependent trades; the SEC is focused on investment firm custody and securities tokenization. Both are moving forward without full staffing, and both are working on the same problem from different angles.
Source material: “U.S. CFTC joins SEC in proposing crypto regulations, though spot-market gap lingers,” CoinDesk.
Get the Notebook.
The day's best stories and every fresh verdict, in plain English, in your inbox by seven. One email a day, no more.