The U.S. Commodity Futures Trading Commission on Monday proposed new rules to regulate digital asset transactions and markets, moving ahead with federal oversight of crypto even after lawmakers blocked the Clarity Act last month.

Under the proposal, U.S. crypto exchanges could opt into a federal regulatory regime. Platforms offering leveraged trades would be able to register with the regulator if the rules are approved, according to the agency's release.

"Today's action is a critical step in the CFTC's ongoing efforts to ensure America remains the crypto capital of the world," CFTC Chairman Mike Selig said in the announcement.

What did the chairman say about the legal basis?

Selig, who previously served as chief counsel at the SEC's Crypto Task Force, tied the rulemaking directly to existing law and executive direction. "The Commission's announcement begins our process of new rulemakings grounded in the CEA's purpose and President Trump's directive to propose a federal crypto asset regulatory market structure using the CFTC's existing statutory authorities," he said.

He also signaled this is only the opening move. "Today's action is just the beginning…America can lead the next generation of financial technology without repeating the mistakes of the last one," the chairman said in remarks shared by the agency.

Why are regulators acting while legislation is stalled?

The Clarity Act, which would formally divide oversight among regulators by distinguishing which digital assets are securities, commodities or stablecoins, stalled this year. The banking lobby objected to crypto companies paying customers stablecoin rewards, while some lawmakers — mostly Democrats — raised ethics concerns about the legislation.

Regulators are drafting the rules the crypto industry has long requested regardless. Selig said last month that the CFTC was preparing for markets transitioning to trading "24-7, on-chain."

The SEC has moved in parallel. In September it approved tokenized stock trading, after proposing its own framework for crypto asset offerings in August — pressing ahead while the landmark bill sat in limbo.

President Donald Trump campaigned on supporting the digital asset industry and, since taking office, has signed pro-crypto legislation and executive orders. In August he urged lawmakers to pass the Clarity Act, calling it "very powerful."

What happens next in the process?

The CFTC's preliminary rulemaking notice opens for public comment for 60 days after publication in the Federal Register. The agency will then review feedback and decide whether to issue a formal proposed rule, which would go through another comment period before any final rule is adopted.

For exchange operators, the practical consequence is a potential path to federal registration for leveraged products under CFTC authority rather than state-by-state regimes — a structural shift in how U.S. crypto venues would be supervised if the process concludes.