TLDR
- The CFTC submitted a crypto market regulatory proposal to the White House Office of Management and Budget on September 17
- The Senate failed to advance the Clarity Act earlier in the week, pushing regulators to act under existing authority
- The SEC issued an “innovation exemption” giving platforms a five-year path to offer onchain trading of tokenized stocks
- The CFTC also published a no-action letter allowing software providers to connect users to derivatives markets without registering as introducing brokers
- Coinbase CEO Brian Armstrong said clarity is “coming to crypto regardless” after the Senate vote
The CFTC sent a new crypto regulatory proposal to the White House for review after the Senate failed to pass the Clarity Act. The filing was received on September 17 and is listed at the “prerule” stage, meaning it is still early in the process. No details about the rules have been made public.
CFTC Submits Crypto Market Rule Proposal for White House Review as CLARITY Act Stalls
A regulatory filing on the White House Office of Management and Budget (OMB) website indicates that the US Commodity Futures Trading Commission (CFTC) submitted a proposal to regulate… pic.twitter.com/XJSzJ9k1MK
— Wu Blockchain (@WuBlockchain) September 18, 2026
The proposal is titled “Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets.” It is not yet clear which assets it covers or what exchanges would need to do to comply.
Once the White House Office of Management and Budget reviews the draft, it returns to the CFTC for a vote and public comment. A second vote would then be needed before the rules take effect.
Senate Fails to Advance Clarity Act
The Clarity Act was meant to create a federal framework for crypto markets. The Senate did not advance it during a vote on September 15.
The day after the vote, CFTC Chair Michael Selig posted on X that the agency was “locked in and ready to ship” rules using its existing authority. SEC Chair Paul Atkins said the SEC would move ahead “with or without legislation.”
— Mike Selig (@ChairmanSelig) September 16, 2026
Selig had signaled this direction in August. At an Innovation Advisory Committee conference on August 20, he said the CFTC was prepared to act if the Clarity Act stalled.
He also said he had directed staff to explore rules that could let registered and unregistered crypto exchanges become a type of designated contract market called a “crypto asset market,” where leveraged crypto trading could be offered under CFTC oversight.
SEC Opens Path for Tokenized Stock Trading
On the same day the CFTC filed its proposal, the SEC issued an “innovation exemption.” It gives qualifying platforms a five-year window to offer onchain trading of certain tokenized stocks without registering as securities exchanges.
Both agencies say they are working together to give the crypto industry clearer rules under their current authority.
The CFTC also published a no-action letter on Friday. It allows certain software providers to connect users to regulated derivatives markets without registering as introducing brokers.
Providers can market specific contracts and collect transaction-based fees. But they cannot hold customer funds, generate trading signals, or control how orders are routed.
The relief includes conditions like risk disclosures and recordkeeping requirements. It stays in place until the CFTC adopts formal rules for software developers.
Coinbase CEO Brian Armstrong said after the Senate vote that regulators already have the tools they need. “So clarity is coming to crypto regardless,” he wrote on X on September 15.
