The CFTC has launched the third phase of the cryptocurrency race, with a public comment deadline of October 20.
The U.S. Commodity Futures Trading Commission (CFTC) has officially launched the third phase of the 'cryptocurrency race,' expanding its scope from spot trading to the development of a comprehensive regulatory framework for the digital asset market. This move aims to implement recommendations from the President's Working Group on Digital Asset Markets, marking an important step in establishing unified federal regulation.
Acting Chair of the CFTC Caroline Pham emphasized in a statement on Thursday: 'The administration has made it clear that allowing immediate digital asset trading at the federal level is a top priority.' This statement reflects the administration's determination to create a clear and favorable legal environment for the cryptocurrency industry.
The latest race expands significantly compared to previous phases, not only focusing on spot trading but also addressing all remaining recommendations from the Working Group report. The goal is to reinforce the U.S. leadership position in advanced technologies such as digital assets and blockchain.
Andrew Rossow, CEO of AR Media Consulting and public attorney, noted that the CFTC is 'trying to lay the legal groundwork by seeking to establish a federal digital asset spot market.' He believes this move will 'address the fragmented state-by-state situation and the prolonged existence of a legal gray area,' and is 'part of a federal legalization strategy to create foundational reforms.'
Benefits for investors and the market
Rossow predicts that individual investors 'are likely to benefit from enhanced protections' as 'federal barriers are removed to restore confidence in a sector already tarnished by weak oversight.' This is particularly important in the context of the cryptocurrency market, which has experienced significant volatility and regulatory controversy recently.
This report aims to provide a unified federal legal framework for the digital asset market, addressing critical gaps in market structure, custody, stablecoin regulation, and anti-money laundering standards. The remaining phases are expected to tackle unresolved issues related to DeFi oversight, banking access, tax clarity, and inter-agency coordination.
The cryptocurrency race is designed in four distinct phases. The first phase on August 1 established the foundational framework, the second phase on August 4 initiated the spot trading initiative. The current phase expands into a broader regulatory framework, while the fourth phase is expected to translate stakeholder feedback into official regulations and specific oversight guidelines.
Ray Youssef, CEO of the P2P messaging and trading app NoOnes, stated: 'The U.S. is asserting control over digital dollars and establishing standards that other countries may have to follow.' He warned that 'countries that have been hesitant may be forced to adopt similar frameworks or risk falling behind in the modernization race.'
The CFTC has set a deadline of October 20 for the public to submit comments on this expanded set of recommendations, providing an opportunity for stakeholders to contribute their views to the important legal framework-building process.