The U.S. Commodity Futures Trading Commission (CFTC) is preparing its first formal regulatory package for cryptocurrency markets, moving away from the “regulation through sanctions” approach that was prominent in the previous period. Under two new regulations called Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM), the agency aims to create clear federal-level rules for crypto asset trading platforms.
The CFTC stated that the cryptocurrency sector in the US has developed under regulatory uncertainty for many years, and although Congress has been unable to enact comprehensive cryptocurrency market legislation, the CFTC and the US Securities and Exchange Commission (SEC) can establish rules for the market within their existing legal powers.
The organization stated that under the previous administration, the CFTC and SEC primarily focused on enforcing regulations against cryptocurrency exchanges, custody service providers, and software developers, arguing that new rules appropriate to the sector’s characteristics were not created. According to the statement, this approach led many crypto companies to relocate outside the US.
