The Commodity Futures Trading Commission is pressing ahead with its own framework for cryptocurrency markets after Congress failed to advance a major digital asset bill.

The agency submitted a proposed rule covering crypto asset transactions and markets to the White House for review on Sept. 17, moving the measure into the federal review process. The filing signals that the CFTC intends to act under its existing authority while lawmakers remain divided over comprehensive legislation.

The submission came days after the Senate failed to advance the CLARITY Act on Sept. 15. The procedural vote ended 50-49, falling short of the 60 votes needed to proceed — the threshold the Senate requires to cut off debate and advance most legislation toward a final vote. That legislation would have established a broader statutory framework for digital assets and given the CFTC a larger role in overseeing spot markets for qualifying digital commodities, an area where the split of regulatory authority has been a central point of division in Congress's market structure debate.

CFTC Moves Under Existing Authority

The proposal remains confidential during the initial review. The Office of Management and Budget's regulatory review office can request changes before returning the measure to the CFTC — a standard checkpoint for significant federal regulations that gives the executive branch a look before publication.

CFTC Chairman Michael Selig previously directed staff to develop rules that could establish a crypto market structure without waiting for new legislation. The approach could expand the agency's role over crypto trading venues and certain digital asset transactions. The distinction carries weight for U.S. crypto firms: legislation would have written the CFTC's jurisdiction into law, while a rulemaking rests on the agency's interpretation of the authority it already holds.

The proposal still faces several procedural steps. After the White House review, the CFTC would need to vote on the measure before publishing it for public comment.

What Comes Next for Crypto Regulation

The rulemaking could give U.S. crypto businesses a clearer regulatory pathway while Congress continues its debate over market structure legislation. It could also raise questions about how far the CFTC can extend its authority under existing law — questions that industry participants could press the agency to answer once a draft is opened for comment.

If the proposal reaches the formal notice stage, the public will have an opportunity to comment. The agency would then consider that input before voting on any final rule.

For crypto exchanges, traders and investors, the development marks another shift in the U.S. regulatory landscape. Rather than waiting exclusively for Congress, federal agencies are increasingly using existing powers to address digital asset markets. The near-term signals to watch: how the proposal emerges from the White House review, whether the CFTC's commissioners vote to publish it, and whether Congress makes another attempt at market structure legislation.