Mike Selig, Chairman of the US Commodity Futures Trading Commission (CFTC), announced that the time has come to take action on new regulations for the cryptocurrency market. In an interview with CNBC, Selig stated that the CFTC is working on rules for structuring the cryptocurrency market within its existing powers. This announcement comes just eight days after the Senate blocked the Crypto Act (CLARITY Act).
CFTC’s New Regulatory Steps
Selig argued that the CFTC could act even without congressional approval. In this process, one of the priorities the CFTC has identified for new regulations is futures contracts (perps). The CFTC plans to create a new market category in this area, allowing exchange platforms to offer leveraged crypto trading. However, legal regulation is still needed for its claim to jurisdiction over the spot market.
These developments present a significant opportunity for futures leaders like Hyperliquid and Lighter. These companies are expected to achieve greater integration into the US market as the CFTC takes further steps.
Busy Week in US Crypto Policies
Last week was quite eventful in terms of US crypto policies, following the Senate’s blocking of a bill. The SEC approved a five-year Novelty Exception allowing tokenized US stocks to be traded on public blockchains without exchange registration. Additionally, the SEC and CFTC are working with the White House to develop new regulations for crypto asset transactions and markets.
Selig stated that the CFTC needs to reassess all of its rules for the transition to 24/7 on-chain markets driven by algorithms and automated finance. This means the CFTC is expected to take on a regulatory role in markets where software manages trading.
