The U.S. Commodity Futures Trading Commission (CFTC) has announced an advance notice of proposed rulemaking that could establish a comprehensive regulatory framework for retail commodity transactions involving digital assets. This initiative, known as Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM), aims to provide regulatory clarity for crypto markets.
CFTC Chairman Michael S. Selig introduced the advance notice of proposed rulemaking (ANPRM) on October 5, 2026. He stated that this ANPRM represents the CFTC’s “first round of regulations for crypto markets.” The agency intends to use Section 2(c)(2)(D) of the Commodity Exchange Act (CEA), which covers retail commodity transactions offered on a leveraged, margined, or financed basis, to create “fit-for-purpose” rules for crypto assets. This approach marks a shift from the prior administration’s primary use of this provision for enforcement.
The ANPRM outlines a history of the CFTC’s engagement with crypto assets, moving from an early approach (2014-2020) and regulation by enforcement (2021-2024) to a focus on regulatory clarity. Regulation CTX would interpret key statutory terms like “offer” and “actual delivery” as they apply to crypto assets. It would also treat certain leveraged, margined, or financed crypto asset transactions on or subject to designated contract market (DCM) rules as covered transactions under CEA Section 2(c)(2)(D). Regulation CAM would introduce a new category of DCM, specifically for markets trading only CTXs, with tailored rules.
A significant aspect of the ANPRM is its preliminary belief that comprehensive federal regulation of these transactions preempts varying state laws. The CFTC is seeking comments on whether current registration requirements apply and how platforms should comply with core principles. This could offer exchanges an optional federal registration alternative to navigating state money transmitter licensing and regulations. For retail customers, the proposed framework aims to provide exchange-level market integrity and asset protections.
Market participants have been seeking guidance on facilitating novel products in the digital asset space. The ANPRM addresses the “actual delivery exception,” which exempts certain contracts that demonstrate typical cash market activity rather than mimicking futures contracts, including those resulting in actual delivery within a specified period. This interpretation is crucial for onchain and self-custodial activity.
Potential Benefits for Market Participants
Centralized crypto exchanges could benefit from the proposed Crypto Asset Market (CAM) registration, which is designed for spot markets and allows for integrated business models. Existing DCMs and Futures Commission Merchants (FCMs) may also find opportunities. Registered DCMs could add CTXs under their current registration, while FCMs could develop new business lines by intermediating CTXs and offering financing.
Banks could play a defined role as FCM-sponsored leverage providers. For DeFi protocols, wallet providers, and self-custody users, the CFTC preliminarily views onchain protocols that deliver assets to a user’s wallet as satisfying actual delivery, even with protocol-level liquidation mechanics. This offers clearer guidance than previously available.
Retail customers trading on leverage could gain enhanced protections, including resistance to manipulation, surveillance, segregation, net capital, proof of reserves, and FCM disclosures. Token projects might find it easier to list on a CAM if they meet forward-looking criteria such as unrestricted circulating supply and decentralized control.
The CFTC is requesting comments on all aspects of the ANPRM, with a particular focus on issues such as the interpretation of “offer” and “actual delivery,” listing standards, surveillance, position limits, reporting, trade execution, proof of reserves, leverage arrangements, and the CAM margin regime. The comment period will remain open for 60 days after the ANPRM is published in the Federal Register. Market participants are encouraged to engage with the proposed rules to shape the final regulations.
The ANPRM rests on section 2(c)(2)(D) of the Commodity Exchange Act. This provision covers retail commodity transactions offered on a leveraged, margined, or financed basis. The CFTC proposes to use this section to write “fit-for-purpose” rules for crypto assets.
Regulation CTX would interpret key statutory terms, chiefly “offer” and “actual delivery,” as they apply to crypto assets. It would also treat trading on or subject to DCM rules of certain transactions involving crypto assets that are leveraged, margined, or financed as covered transactions under CEA Section 2(c)(2)(D).
Regulation CAM would create a new category of designated contract market (DCM), the crypto asset market (CAM), with rules tailored to these transactions. A CAM would be limited to markets that trade only in covered transactions under Reg CTX.
The CFTC is soliciting feedback on whether existing registration requirements are applicable and how platforms should comply with the agency’s core principles. The comment period is crucial for shaping the eventual proposed rules.
Frequently asked questions
What is the CFTC's advance notice of proposed rulemaking regarding crypto assets?
The CFTC has announced an advance notice of proposed rulemaking (ANPRM) to establish a comprehensive regulatory framework for retail commodity transactions involving digital assets, known as Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM).
What is the purpose of Regulation CTX and Regulation CAM?
Regulation CTX aims to interpret key statutory terms like ‘offer’ and ‘actual delivery’ for crypto assets and would treat certain leveraged or margined crypto transactions as covered under the Commodity Exchange Act. Regulation CAM would create a new category of designated contract market (DCM) specifically for markets trading only CTXs.
How might these new regulations affect state laws?
The CFTC preliminarily believes that comprehensive federal regulation of these transactions would preempt varying state laws, potentially offering exchanges an optional federal registration in place of multistate licensing.
What are the potential benefits for market participants?
The proposed rules could offer centralized crypto exchanges a tailored registration, provide retail customers with enhanced market integrity and asset protections, and offer banks a defined role as FCM-sponsored leverage providers.
What is the next step for these proposed regulations?
The CFTC is seeking comments on all aspects of the ANPRM, with the comment period remaining open for 60 days after its publication in the Federal Register. These comments will help shape the final proposed rules.
