CFTC issues ANPRM to advance crypto asset regulatory framework

On October 5, 2026, the Commodity Futures Trading Commission (CFTC) published an Advanced Notice of Proposed Rulemaking (ANPRM) announcing its intent to establish a comprehensive framework of “fit-for-purpose” rules under Section 2(c)(2)(D) of the Commodity Exchange Act (CEA) governing leveraged, margined or financed retail transactions in crypto assets and the markets on which they trade.¹ The ANPRM previews two forthcoming proposals, Regulation Crypto Asset Transactions (Reg CAT) and Regulation Crypto Asset Markets (Reg CAM), with comments due December 14, 2026.²

I. Background

Section 2(c)(2)(D) of the CEA applies to agreements, contracts or transactions in any commodity that are offered to a retail customer on a leveraged or margined basis, or financed by the offeror, the counterparty or a person acting in concert with them. These retail commodity transactions are generally treated as if they were futures and must be conducted on a registered exchange. Although the CFTC has overseen aspects of crypto asset markets since 2014, the CFTC acknowledges in the ANPRM that it has never adopted rules explaining how Section 2(c)(2)(D) applies to crypto assets and has instead relied largely on enforcement and staff-level guidance.

The ANPRM comes after a series of recent CFTC initiatives, including the 2025 “Crypto Sprint” and request for comment on listed spot crypto trading, and the CFTC’s December 4, 2025 announcement that leveraged retail crypto asset transactions (CATs) would trade on a US regulated exchange for the first time.³ The ANPRM follows the further recent setbacks in the passage of the Clarity Act in Congress, which would have established a legislative digital asset market framework for which the CFTC would have been the primary regulator of digital assets. 

The ANPRM is also expressly positioned as a complement to the Securities and Exchange Commission’s (SEC) proposed Regulation Crypto Assets, released August 18, 2026, and builds on the March 2026 joint SEC/CFTC crypto asset taxonomy.⁴ Because the SEC’s proposed Regulation Crypto Assets and the CFTC’s forthcoming Reg CAT and Reg CAM are interdependent, the line between securities and commodities treatment will directly shape which regime applies to a given product or platform.

II. Summary of the ANPRM

As an advanced notice, the ANPRM previews two likely proposals rather than provide proposed rule text. Reg CAT would set out the CFTC’s preliminary interpretation of when CATs are subject to Section 2(c)(2)(D), including definitions of certain key statutory terms. Reg CAM would codify a tailored registration subcategory of designated contract markets (DCMs), a crypto asset market (CAM), with CAM designation limited to exchanges that list only covered CATs. Reg CAM is intended to tailor on-exchange futures requirements to the commercial realities and risks of CATs.

The CFTC seeks comment on all aspects of the ANPRM and poses specific questions related to its likely proposals. Among other topics, the CFTC asks how it can (i) prevent abusive practices in CAMs and CATs under a single, uniform national regime; (ii) provide crypto-specific context on requirements and practices that the CFTC, based on its oversight experience, considers to be industry best practices for compliance; and (iii) codify the CAM registration category. Specific questions address, among other things:

• trading practices and market integrity:
  • how a CAM should surveil trading in both the CAT market and the underlying spot markets, including through the use of blockchain data, pricing oracles and information from other trading facilities
  • how Reg CAM should address crypto-specific disruptions, such as blockchain congestion, downtime, forks, reorganizations and oracle failures
• customer protection and intermediary oversight:
  • crypto asset custody and permitted depositories
  • segregation of customer assets
  • capital and risk management requirements
• clearing and settlement:
  • whether the existing derivatives clearing organization framework is fit-for-purpose for CATs
  • what exemptions or modifications may be needed for the spot leg and leveraged positions
• treatment of spot markets:
  • whether Reg CAM provides a viable federal path for exchanges to satisfy the on-exchange requirement while preserving legitimate spot-market and on-chain activity
  • whether a commercially viable path would remain for exchanges operating under existing regimes for leveraged spot crypto transactions

III. Practical Implications

The ANPRM has several implications for market participants. First, crypto exchanges and trading platforms offering leveraged, margined or financed crypto products to retail customers would likely be captured by Reg CAT and Reg CAM, and would accordingly be required to pursue CAM designation, DCM designation or restructure their product set. Second, market participants sponsoring crypto-linked vehicles or trading CATs may be affected by changes in market structure, execution venues, pricing and liquidity and custody arrangements, and may face potential commodity pool operator and commodity trading advisor considerations. Third, financial services intermediaries in CAT markets may face specific custody, segregation, permitted depository and capital requirements under the new regulations, which may impact their clearing and customer crypto asset safeguarding services.

Comments to the ANPRM must be received on or before December 14, 2026. Because the CFTC intends to use the comments received to inform a future proposed rule, the ANPRM represents an early and meaningful opportunity to shape the framework. Clients may wish to identify the questions most relevant to their business models and consider coordinating comments with any submissions on the SEC’s proposed Regulation Crypto Assets, given the interdependence of the two initiatives.

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If you have any questions about this legal briefing, please feel free to contact any of the attorneys listed or the Eversheds Sutherland attorney with whom you regularly work.

_{1 See CFTC Press Release No. 9307-26 (Oct. 5, 2026), CFTC Seeks Public Comment on Advanced Notice of Proposed Rulemaking Relating to Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets, accessible at https://www.cftc.gov/PressRoom/PressReleases/9307-26.}

_{2 See Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets, 91 Fed. Reg. 64811 (Oct. 13, 2026).}

_{3 See CFTC Press Release No. 9104-25 (Aug. 4, 2025), Acting Chairman Pham Announces CFTC Crypto Sprint, accessible at https://www.cftc.gov/PressRoom/PressReleases/9104-25; CFTC Press Release 9145-25 (Dec. 4, 2025) Acting Chairman Pham Announces First-Ever Listed Spot Crypto Trading on US Regulated Exchanges, available at https://www.cftc.gov/PressRoom/PressReleases/9145-25.}

_{4 See Application of the Federal Securities Laws to Certain Types of Crypto Assets and Certain Transactions Involving Crypto Assets, 91 Fed. Reg. 13714 (Mar. 23, 2026); CFTC Press Release No. 9198-26 (Mar. 17, 2026), accessible at https://www.cftc.gov/PressRoom/PressReleases/9198-26.}