Today, the US Commodity Futures Trading Commission (CFTC) has put forth a two-part proposal aimed at regulating cryptocurrencies, submitting it to the White House Office of Information and Regulatory Affairs (OIRA).
Labeled with the identifier RIN 3038-AF80, the proposal encompasses two main components:
- Regulation of Cryptocurrency Asset Transactions
- Regulation of Cryptocurrency Asset Markets
Details regarding the proposal are currently under wraps as it begins its initial review at the White House.
Nonetheless, the initial framework hints at establishing a new type of exchange referred to as “crypto asset markets.” This would enable both current and future cryptocurrency exchanges to conduct spot trading for digital commodities like Bitcoin (BTC) and XRP under the supervision of the CFTC.
OIRA has up to 99 days to carry out its review, after which the proposal will return to the Commission for a vote. Following this, it will be published in the Federal Register, with two separate public comment periods of 60 days each.
While these developments are promising, a final enforceable rule is unlikely to be established before late 2027.
No Action Taken, Yet Regulation Persists
It’s worth noting that this is one of several initiatives showing the CFTC’s and the US Securities and Exchange Commission’s (SEC) commitment to steer the cryptocurrency landscape following the recent dismissal of the Clarity Act.
Just yesterday, the CFTC disclosed an exemption for software providers operating in crypto and prediction markets from broker classification under specific conditions. Simultaneously, the SEC unveiled a five-year “Innovation Exemption” rule that permits on-chain trading of certain tokenized stocks.
Bitcoin Overcomes Bearish Trends
In addition to the challenges posed by the Clarity Act’s failure, the market is also contending with other bearish pressures, such as a potential interest rate hike by the Federal Reserve, expected dovish rate changes in Japan on the horizon, a rise in the US Dollar Index (DXY) above the 100 mark, and surging oil prices exceeding $100.
Despite these challenges, Bitcoin has defied the downward trend, making a comeback to the $80,000 range. The overall cryptocurrency market cap has also seen a rise of 5.11% today, totaling $2.76 trillion.
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