Regulatory Push in Crypto Sector: CFTC Introduces Speedy Regulatory Program for Digital Assets
The Commodity Futures Trading Commission (CFTC) is taking strides to provide clearer rules for startups in the cryptocurrency industry. This move forms part of the CFTC's ongoing efforts to modernize its crypto policies, which began in January 2025 [1].
In a significant step, the CFTC is preparing a draft paper that will outline its role in crypto oversight, specifically over digital commodity spot markets and derivatives. The draft aims to clarify and formally define the CFTC's jurisdiction, addressing ambiguities in its legal authority [3][4].
The draft paper aligns with the Senate Banking Committee’s recent proposals on the Securities and Exchange Commission (SEC) regulatory framework. The joint oversight framework will likely cover registration requirements and rulemaking collaboration for crypto firms, aiming to reduce fragmentation and support market innovation [1][3].
The Senate Agriculture Committee is preparing a draft paper for release in early September 2025. This bipartisan draft guidance is part of broader initiatives aimed at making the U.S. a global leader in cryptocurrency [2].
Meanwhile, the CFTC has already made significant strides in the crypto space. For instance, 24/7 trading in crypto has been live since May, and perpetual derivatives in crypto have been operational since April [1].
Furthermore, the CFTC is considering a pilot program to test new ideas in crypto regulation, such as tokenization and 24/7 markets. The CFTC's "crypto sprint" is part of Project Crypto, an initiative aimed at making the U.S. a global leader in cryptocurrency [1].
The CFTC has also eliminated outdated guidance regarding cryptocurrencies. Acting CFTC Chairman Caroline D. Pham stated that the agency is collaborating closely with SEC Chairman Paul Atkins and Commissioner Hester Peirce [1].
The draft paper complements a separate proposal from the Senate Banking Committee focused on the SEC's crypto role. The Senate's efforts aim to provide regulatory clarity for the crypto industry, aligning with President Trump's plan to make America the "crypto capital of the world" [1].
In summary, the upcoming draft paper from the Senate Agriculture Committee will define and expand the CFTC’s jurisdiction over digital commodity spot markets alongside derivatives. It will clarify regulatory responsibilities, enforcement, and market oversight roles. The draft will also promote coordination with the SEC on a unified regulatory framework for crypto, support legislative timelines and directives from recent federal crypto governance acts, and reinforce the broader regulatory initiative known as the “Crypto Sprint” [1][4].
- The CFTC's draft paper plans to formally define its jurisdiction over crypto spot markets and derivatives, aligning with the Senate's efforts to create a unified regulatory framework for these businesses in the burgeoning digital finance industry.
- The Senate Agriculture Committee's upcoming draft guidance aims to establish and enhance the CFTC's role in overseeing digital commodity spot markets and derivatives, fostering collaboration with the SEC and supporting technological innovation in cryptocurrency and finance.
