On October 5, 2026, the Commodity Futures Trading Commission launched a major regulatory initiative. The agency published an advance notice of proposed rulemaking for two new rules. Officials call them Regulation CTX and Regulation CAM. Together, they would build the first dedicated federal framework for crypto exchanges. CFTC Chairman Michael Selig unveiled the proposal in remarks at Fordham Law’s Blockchain Regulatory Symposium. He called the ANPRM “a critical step” toward clear rules for crypto markets. The public now has 60 days to comment once the notice appears in the Federal Register. That window is expected to close around early December 2026. However, the ANPRM does not create final law yet. It only asks for input on how the CFTC should use its existing authority.
🇺🇸 BREAKING: Today, the CFTC launched the process for a new federal regulatory framework for U.S. crypto markets. The agency’s ANPRM seeks comment on Regulation CTX and CAM, including a new “Crypto Asset Market” registration category for leveraged retail crypto trading. https://t.co/mMfNoKIpAp
— Generation Infinity (@Genfinity) October 5, 2026
The Three Rungs of Crypto Exchanges
Selig framed the proposal around a three-tier structure for crypto exchanges. He calls the categories Rung 1, Rung 2, and Rung 3. Rung 1 exchanges offer ordinary spot trading, with no leverage or financing involved. These platforms answer mainly to state money transmission laws, though the CFTC keeps anti-fraud authority over them. Rung 2 exchanges offer retail customers margined, leveraged, or financed crypto trades. Congress already requires these exchanges to register with the CFTC under the Commodity Exchange Act. Rung 3 exchanges go further, offering perpetual futures and other derivatives. These platforms already sit under exclusive CFTC jurisdiction today. Regulation CTX and Regulation CAM target that middle Rung 2 tier specifically. The goal is a clear federal registration pathway for exchanges in that bracket.
What Regulation CTX Would Require
Regulation CTX addresses what the CFTC calls crypto asset transactions, or CTXs. The rule relies on Section 2(c)(2)(D) of the Commodity Exchange Act. That provision already reaches retail commodity trades done on margin, leverage, or financing. Under the proposal, exchanges offering these trades would route them through a registered futures commission merchant. That intermediary would handle customer protections, including segregation of customer funds. The CFTC also wants to clarify an existing exception for “actual delivery.” Current law exempts a transaction if the asset reaches the buyer within 28 days. Selig proposed defining actual delivery as a transfer to a user’s own non-custodial wallet. That change would close a loophole some exchanges currently use to avoid registration. Together, these pieces aim to bring leveraged retail trading under one consistent federal rulebook.
Regulation CAM and the New Market Category
Regulation CAM would create a new registration category called a Crypto Asset Market, or CAM. The category sits inside the CFTC’s existing designated contract market framework. Exchanges offering only CTXs could register as a CAM instead of a full DCM. That path still requires compliance with the statutory DCM core principles. However, the specific regulations would be tailored for crypto trading rather than futures. The CFTC also proposed proof-of-reserves obligations for exchanges holding customer assets in omnibus accounts. Additionally, CAMs would need listing standards to screen out tokens vulnerable to manipulation. Those standards would weigh token distribution, lock-up periods, and vesting schedules. The approach effectively codifies practices some exchanges already follow on a voluntary basis. For many platforms, CAM registration offers a lighter compliance path than full DCM status.
Why Spot Trading Stays Outside CFTC Reach
Notably, the ANPRM does not touch ordinary spot crypto trading at all. Buying and selling bitcoin or ether outright still falls under state money transmission law. The Commodity Exchange Act gives the CFTC narrow authority over plain spot commodity sales. That authority mainly covers transactions involving leverage, margin, or financing instead. As a result, Regulation CTX and CAM focus specifically on that leveraged segment. This mirrors the CFTC’s earlier spot crypto listing initiative from August 2025. That initiative explored how exchanges could list spot crypto contracts under existing law. It also raised open questions about overlap with SEC securities rules. The spot market gap means everyday crypto trading still lacks a dedicated federal framework. Industry groups have pushed Congress to close that gap through legislation instead.
The CLARITY Act Backdrop and What Comes Next
This proposal arrives after Congress failed to pass the CLARITY Act this year. That bill would have divided crypto market jurisdiction between the CFTC and SEC. It also would have mandated registration for centralized exchanges more broadly. Selig acknowledged his disappointment that lawmakers missed that opportunity. Still, he argued the CFTC can advance parts of that vision using current authority. The SEC has pursued parallel efforts of its own under its Project Crypto initiative. Both agencies now appear to be racing ahead of Congress on crypto market structure. For now, Regulation CTX and CAM remain proposals, not final rules. The CFTC will review public comments before it drafts any formal regulations. Exchanges, trading platforms, and industry groups are expected to weigh in heavily during the comment window.
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