CFTC Chairman Michael Selig on Monday announced progress on digital asset regulation: the agency issued an advance notice of proposed rulemaking for CTX and proposed creating a new "crypto asset market" (CAM) category for exchanges following the Senate's failure to pass the CLARITY Act.

Remarks at Fordham Law: "with or without legislation"

Speaking at the Fordham Law Blockchain Regulatory Symposium, Selig stated that the CFTC will move forward on President Donald Trump's directive "with or without legislation" from Congress, relying on existing statutory authority.

CTX: framework for margin retail trading of crypto assets

According to written comments, the CFTC issued an advance notice of rulemaking for companies "offering retail customers the ability to trade crypto assets on a margined, leveraged, or financed basis," designating this initiative as CTX.

CAM alongside DCM: unified federal oversight for exchanges

The agency intends to create a new category of platforms—"crypto asset market" (CAM)—alongside the existing designated contract market (DCM) status, allowing certain exchanges to register under either category. According to Selig, the proposed rules "codify a pathway" for crypto exchanges to operate under unified national CFTC oversight, using the same statutory authority previously applied to enforcement actions.

Spot trading remains under state law

The proposals do not cover "ordinary spot crypto exchanges," which are typically subject to state money transmission laws. For platforms offering spot trading in assets such as Bitcoin (BTC), the CFTC will retain authority to address fraud and manipulation.

SEC has already introduced a draft; regulators face staffing shortages

The CFTC's initiative comes several weeks after the Senate rejected the CLARITY Act, which would have expanded the commission's powers. Back in August, the SEC introduced its own draft for an "adapted securities offering regime" for crypto assets.

Amid these new initiatives, both regulators are experiencing staffing shortages: Friday was SEC Commissioner Hester Peirce's last working day after eight years of service, shortly before an 18-month extension of her second term. The SEC now has two commissioners, while Selig remains the sole commissioner and chairman at the CFTC. A White House spokesperson said the president intends to nominate candidates soon, but as of Monday, no replacements have been announced for Peirce or the six other commissioner seats.