CFTC Submits Crypto Regulatory Proposal to White House — Taking Independent Action After Legislative Stalled

With the passage of cryptocurrency legislation in U.S. politics repeatedly stalling, regulators have finally rolled up their sleeves to take action themselves. According to reports from Cointelegraph, the U.S. Commodity Futures Trading Commission (CFTC) has unexpectedly submitted its own independent market regulatory proposal to the White House. Rather than waiting for Congress to create new laws, they intend to set the rules of the game using their existing authority. Now that the regulatory pen has begun to move directly, shall we take an easy and quick look with Kito at what changes are in store for investors like us?

The Butterfly Effect of the Stalled CLARITY Act

The incident traces back to September 15. At the time, the 'CLARITY Act,' aimed at establishing a basic framework for stablecoin and cryptocurrency regulation, was up for review in the U.S. Senate. Despite high market expectations, it unfortunately failed to pass due to an inability to bridge disagreements between the parties.

As the legislation showed signs of being delayed indefinitely, the CFTC, as a regulatory authority, decided not to just sit and wait. According to Cointelegraph, the CFTC has drafted and sent specific guidelines to the White House on how to regulate the market using their fundamental powers, even without new laws. With Congress blocked, they have chosen to take a detour through administrative action.

Shifting to Administrative Legislation: Changing the Referee's Rulebook

Since no new law is being enacted, the referee of the game has stepped in directly. Simply put, instead of making a new law, they have revised the rulebook, signaling that their current whistles and rules are sufficient to call fouls.

In fact, not only the CFTC but also the U.S. Securities and Exchange Commission (SEC) has signaled independent strengthening of regulations. For the time being, the eyes and ears of the U.S. cryptocurrency market will be focused not on legislative bills in Congress, but on the administrative rules that authorities are revising and implementing.

For institutional financial firms, having clear guidelines is much better for conducting business than the ongoing state of regulatory vacuum. In the short term, it is a measure that could bring stability to the market. However, the long-term uncertainty—that the regulatory stance could shift whenever a new administration or agency head takes office—remains a concern.

Signs We Should Watch For Moving Forward

There are two key signals we should watch for moving forward.

The first is whether the White House will approve this independent CFTC regulatory proposal as-is and announce it as an official administrative guideline. If the final government approval is granted, the regulatory authority's full-scale move toward administrative legislation could gain even more momentum.

The second is the synergy between legislation and administrative action. Although the bill intended to set detailed market rules was blocked in Congress, significant bills that instill confidence in the entire market, such as the Bitcoin Strategic Reserve bill that passed the U.S. House Financial Services Committee, are still gaining strength. We need to watch whether these macro-level bills can act as a reliable safety net.

Ultimately, the market's direction going forward depends on the specific policy announcements from regulators and the choices of the White House. Rather than moving impulsively, now is the time to calmly observe the White House's next decision and catch our breath.

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