The U.S. Commodity Futures Trading Commission has begun drafting a federal rulebook governing spot crypto exchanges, stepping into a regulatory vacuum left by the collapse of the Clarity Act in Congress, according to PYMNTS.

The initiative signals an attempt by the derivatives regulator to formalize oversight of trading platforms that have operated largely outside the federal perimeter. The CFTC's move comes after legislative efforts to clarify jurisdictional lines between the agency and the Securities and Exchange Commission stalled, leaving federal regulators to fill the void through rulemaking.

What is the CFTC attempting to build?

The contemplated framework would establish baseline standards for exchanges that facilitate trading in digital commodities. The rulebook would address market integrity, surveillance, and customer-protection standards that the agency has historically applied to futures intermediaries. Crypto firms have grown accustomed to operating under state money-transmitter regimes, FinCEN guidance, and self-regulatory organization memberships, but no single federal regulator has held comprehensive authority over spot markets in bitcoin and ether.

Why did the Clarity Act fail?

The Clarity Act sought to assign primary federal oversight of different token categories to specific agencies. The legislation did not advance through Congress in the recent session, despite industry lobbying and bipartisan support for clarifying the regulatory perimeter. Its collapse leaves agencies such as the CFTC and the SEC to determine jurisdictional boundaries through enforcement actions, no-action letters, and formal rulemaking.

What regulatory tools does the CFTC already hold?

The CFTC oversees derivatives markets and has authority over commodities, including bitcoin, which the agency classified as a commodity in 2015. The agency has pursued enforcement actions against unregistered derivatives platforms and offshore exchanges serving U.S. customers. Through its existing toolkit, the agency can prosecute fraud and manipulation, register intermediaries, and impose reporting requirements, but a dedicated spot-market rule would extend that authority to platforms that do not offer derivatives.

What changes for exchanges and token projects?

A formal federal rulebook would create a compliance pathway for exchanges that have relied on state-level licensing and bespoke risk-management frameworks. Trading venues would face defined obligations on capital, custody, recordkeeping, and surveillance. Token issuers could gain certainty around which federal forum reviews their offerings, although the rulemaking process is unlikely to resolve the long-running dispute over whether major tokens fall within the SEC's securities jurisdiction.

What comes next?

The CFTC's rulemaking timetable will determine the practical impact of any new framework. Federal rulemakings typically proceed through notice-and-comment periods that can extend over several months before final adoption. Industry participants will scrutinize the proposed text for the scope of registration thresholds, the treatment of non-custodial software developers, and the definition of "digital commodity." Until the rulebook is published for comment, exchanges will continue to operate under the existing patchwork of state and federal guidance, with the SEC's enforcement docket serving as the principal federal pressure point on platforms that have not registered with either regulator.