CFTC Chairman Michael Selig has identified Bitcoin (BTC), Ether (ETH), Solana (SOL), Stellar Lumens (XLM), Tezos (XTZ) and XRP as examples of digital commodities, under a set of proposed rules that would establish a framework for leveraged crypto trading, customer safeguards and exchange registration in the United States. The labels carry weight because the commodity-versus-security split determines whether an asset falls under CFTC oversight or SEC securities rules.

Selig outlined the proposals at the Fordham Law Blockchain Regulatory Symposium in New York, according to remarks published on the CFTC's website. His remarks covered Regulation CTX and Regulation CAM, customer safeguards, onchain delivery and the treatment of software developers.

CFTC Plans Rules for Leveraged Crypto Trading

The CFTC proposals target exchanges that offer retail customers crypto trading with margin, leverage or financing. Selig referred to these transactions as CTXs and placed them within a three-rung framework: Rung 1 covers ordinary spot exchanges, Rung 2 covers leveraged crypto trading, and Rung 3 covers perps and other derivatives.

Under Regulation CAM, exchanges offering only CTXs could seek registration as crypto asset markets. Designated contract markets could also offer CTXs under tailored rules.

The framework would require futures commission merchant (FCM) intermediation for covered retail transactions, with FCMs handling customer accounts and funds under customer protection rules. FCMs are intermediaries the CFTC already registers and supervises in futures markets, so the requirement would route retail crypto leverage through an existing oversight channel. Those requirements include disclosures, capital standards, asset segregation and anti-money laundering obligations. The CFTC also proposed proof-of-reserves requirements for certain exchanges holding customer property.

CFTC Names Six Digital Commodity Examples

Selig discussed the joint CFTC and SEC crypto asset taxonomy, which divides crypto assets into five categories: digital commodities, digital collectibles, digital tools, stablecoins and digital securities. The taxonomy lists Bitcoin, Ether, Solana, Stellar Lumens, Tezos and XRP as examples of digital commodities. According to Selig, the first three categories generally are not securities.

He also said the CFTC proposes to clarify the actual delivery exception for CTXs. Under the proposal, moving crypto assets to an external, non-custodial wallet within 28 days would generally satisfy that exception. The actual delivery exception is the existing line between leveraged retail commodity transactions and the CFTC's retail commodity futures rules, so a fixed 28-day wallet-transfer window would give exchanges a concrete operational standard to work with.

Selig Outlines Path for Onchain Developers

Selig said the CFTC is exploring a policy for developers who only publish software and do not solicit orders, control execution or hold customer assets. In his view, developers should not need introducing broker registration simply because they publish code. CFTC staff is also engaging with builders to examine onchain venues and where control exists. That piece remains at an exploratory stage rather than a finalized rule.

The proposals followed Congress's failure to send the Clarity Act, a market-structure bill that has not been enacted, to President Trump. With that legislation not yet law, attention now turns to how the measures move through the CFTC's rulemaking process: as proposals rather than final rules, they would need to clear that process, which typically includes a public comment period, before any of these requirements take effect.