Mike Selig, Chairman of the U.S. Commodity Futures Trading Commission (CFTC), stated that the U.S. will no longer stand by as crypto activities move overseas and standards are set by other countries; crypto is returning home, and regulatory clarity will keep it here, led by the U.S.

After Congress failed to pass the Clarity Act, the Commission is using existing authority under the Commodity Exchange Act to advance. On October 5, a notice for proposed rulemaking was published, seeking public comments on retail crypto commodity trading for a 60-day period, covering transactions under Section 2(c)(2)(D) of the Act, and outlining two frameworks: Regulation CTX and Regulation CAM. Selig stated that this is a key step to maintain the U.S. as a global crypto center, with rules designed to prevent fraud like that of FTX before it occurs rather than prosecuting after the fact; he also acknowledged that without Congressional authorization, the Commission lacks the authority to mandate that all platforms must transact in its regulated venues, and that trades, once settled, are generally outside the venue requirements, retaining only anti-fraud and anti-manipulation powers.

On September 17, the Market Participants Division issued Staff Letter 26-25, allowing eligible passive derivatives software developers to connect to regulated markets without registering as introducing brokers. The scope includes event contracts, perpetual contracts, and other regulated derivatives; the software can display market data and positions, send orders directly to registered futures brokers, introducing brokers, and designated contract markets, and can also be embedded in self-custody wallets. This position expands the non-action letter previously granted only to Phantom Technologies in March to similar developers, but does not cover custodial client funds or self-directed orders.

At the U.S. Treasury market conference on September 22, Selig stated that the Commission is preparing for on-chain systems, large-scale tokenization, 24/7 trading, and proxy finance. The Commission has included certain payment stablecoins issued by National Trust Bank as eligible tokenized collateral and is aligning with the GENIUS Act; in May, it also approved the first true Bitcoin perpetual contract on its registered exchange. He also indicated that regardless of whether Congress legislates, the Commission will establish crypto rules using existing authority and will advance Project Crypto with SEC Chairman Paul Atkins to end the mutual obstruction between the two agencies.

This is a shift in regulatory approach, not the implementation of new legislation. Buyers interpret regulatory certainty as a return license for domestic exchanges, stablecoin issuers, and derivatives front-ends; sellers interpret "no mandatory exchange" as offshore platforms still having a moat. Beneficiaries include passive software that can access registered venues, National Trust Bank's stablecoin, and approved perpetual products; those under pressure include offshore contract platforms that rely on regulatory gray areas for fees, and security token issuers still waiting for Congressional delineation.

Source: Public Information