CFTC: Proposes Voluntary Crypto Exchange Framework

CFTC issued an ANPRM to establish a crypto market structure framework for spot transactions under its current authority from the Commodity Exchange Act.

The proposal expands DCM, DCO and FCM registrations while adding a new category for crypto asset markets. Spot exchanges can choose a voluntary federal pathway or retain state money transmitter licenses when no leverage is offered.

Former CFTC Chair Giancarlo noted the plan creates a clear route for exchanges handling borrowed-money trades. Lawyers described the reading of Section 2(c)(2)(D) as creative, extending to retail spot crypto trades even without actual borrowing, following the 2025 Bitnomial precedent. The notice also clarifies actual delivery requires customer possession or control rather than omnibus book-entry claims.