Regulators Propose New Crypto Rules-but Leave Spot Trading Untouched

Dow Jones
Yesterday

Trump regulators are moving to create new rules for cryptocurrency trading following the collapse of a landmark bill in Congress last month.

The Commodity Futures Trading Commission on Monday proposed two new rules for crypto companies that want to facilitate the trading of leveraged, financed or margined crypto transactions, specifically. The rules would require exchanges that want to offer those types of transactions to register with the agency, creating federal oversight and consumer protections.

Michael Selig, the chair of the CFTC, which regulates derivatives markets, announced the rules in a video posted to X that took jabs at Democrats and included music by Kanye West, who goes by Ye.

Separately, the Securities and Exchange Commission has proposed its own guidance and regulations, including an "innovation exemption" for tokenized stocks and crypto custody rules for investment advisers and funds.

Together, the proposals attempt to create a regulatory framework for crypto.

But the rules will leave part of the crypto market without direct federal oversight. Regulators need Congress to act in order to comprehensively regulate the straightforward cash purchase or sale of digital assets in particular.

Such spot trading is currently regulated through a patchwork of existing state and federal laws. Some states, including New York, have created a digital assets license with bespoke rules.

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