CFTC Moves as Congress Hits Pause
The Commodity Futures Trading Commission (CFTC) has taken a decisive step in the ongoing debate over U.S. crypto regulation, submitting a new proposal to the White House on Thursday, September 17.
Senator Cynthia Lummis, one of the Clarity Act’s sponsors, acknowledged that its chances are “all but dead” for this year after Tuesday’s vote. This legislative gridlock has prompted agencies like the CFTC to use their existing authority to fill in regulatory gaps—an approach previously flagged as a fallback by Treasury Secretary Scott Bessent.
The Clarity Act failed to advance in the Senate on Tuesday, leaving federal agencies to act under existing laws.
Crypto Rulebook Heads to OMB
The CFTC’s submission, titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets,” was received by the Office of Information and Regulatory Affairs (OIRA) at the White House on September 17. The filing is currently at what regulators call the “prerule” stage, meaning it marks only an initial step in what could be a lengthy rulemaking process. Details of the proposed regulations have not been disclosed publicly.
Once OIRA completes its review, the draft will be sent back to the CFTC for a commission vote and then opened for public comment. If approved again after public input, these rules could become effective—though there is no guaranteed timeline. The sequence highlights how agency-led rulemaking can move forward even when Congress is stalled.
It remains unclear exactly which crypto activities or assets will fall under these new rules until more information is released.
See Also
Clarity Act Stalled, Agencies Step In
The failure of the Clarity Act has left federal agencies with little choice but to leverage their current powers to address regulatory uncertainty in digital asset markets. On Wednesday, CFTC Chair Mike Selig confirmed that the agency would proceed with crypto rulemaking despite Congress’s inaction. Selig, who was confirmed as chair last year after serving as chief counsel at the SEC’s Crypto Task Force, emphasized that both agencies intend to coordinate efforts moving forward.
A notable contrast emerges: while President Trump publicly urged lawmakers last month to pass what he called a “very powerful” Clarity Act, actual legislative momentum has evaporated. Yet within just two days of that Senate defeat, both major market watchdogs—the CFTC and SEC—have announced new measures using their own authority.
No-Action Relief Buys Developers Time
On September 16, just one day before submitting its proposal to OIRA, the CFTC issued a no-action letter granting temporary relief for certain software providers—including crypto wallet apps—that connect users directly to regulated derivatives markets without registering as brokers. This relief applies only if software remains passive (simply letting users view markets and submit orders) and requires adherence to risk disclosures, recordkeeping, and marketing compliance rules.
This stopgap measure will remain in effect until formal guidance or new rules are adopted—a move designed to prevent disruption for developers while broader regulations are debated. Meanwhile, on that same day, the SEC announced an “innovation exemption” giving qualifying platforms five years to offer onchain trading of tokenized stocks without registering as securities exchanges.
Developers now face a patchwork environment where some regulatory breathing room exists—but only temporarily.
Why It Matters
For crypto industry participants and developers alike, these rapid-fire agency actions mean that regulatory clarity may arrive through administrative channels rather than sweeping Congressional reforms—at least in 2024. The CFTC proposal’s journey began on September 17 and could take months before any final rules are enacted; during this time, stakeholders will have opportunities for public comment and adaptation.
As reported by coindesk.com, both agencies have reiterated their intent to work together on clearer digital asset rules following Congress’s failure to act this week. However, with no details yet available about what specific activities or tokens might be covered under new CFTC rules—and with temporary exemptions set to expire within five years—the landscape remains uncertain for investors and innovators alike.
What could tip the balance
If the White House Office of Management and Budget completes its review of the CFTC’s “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets” proposal, received on September 17, and returns it for a CFTC vote, immediate public disclosure and comment could follow; however, the timeline for OMB action remains unclear.
