CFTC Submits Crypto Market Regulation Plan for White House Review
The US Commodity Futures Trading Commission has formally submitted a regulatory action titled "Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets" to the Office of Information and Regulatory Affairs (OIRA) for White House review. Received on 17 September and listed at the "prerule" stage, the filing marks a concrete step toward unilateral CFTC rulemaking, one that accounting firms, auditors, and CFOs with digital asset exposure can no longer treat as a distant possibility. The right crypto accounting software and internal controls need to be in place before a formal proposal arrives, not after.
What the OIRA Filing Actually Means
OIRA is the White House office that reviews significant regulatory actions before agencies proceed. A "prerule" listing is the earliest formal stage in the US federal rulemaking lifecycle. It tells the market that the CFTC has decided to move, that it has briefed the White House, and that it is working through the initial analytical steps before drafting a formal proposed rule.
What is and is not disclosed
The OIRA filing itself does not disclose the content of the planned regulation. No draft rule text, no proposed fee structures, no specific product definitions. What it does confirm is the scope: crypto asset transactions and crypto asset markets. That two-part framing is significant. "Transactions" points toward trade reporting, clearing, and counterparty obligations. "Markets" points toward venue registration and trading platform requirements.
The prerule stage in practice
After a prerule, an agency typically publishes an Advance Notice of Proposed Rulemaking (ANPR) seeking public comment on the general direction, before issuing a formal Notice of Proposed Rulemaking (NPRM). Both stages offer comment periods, usually 60 to 90 days each. That means final rules are likely at least 12 to 18 months away under a normal timeline, though agencies can accelerate when political pressure is high.
The CLARITY Act Collapse as Catalyst
Timing is everything here. The Senate failed to advance the CLARITY Act on 15 September, just two days before the CFTC's OIRA filing was received. That legislation would have established a comprehensive federal framework dividing jurisdiction over digital assets between the SEC and the CFTC. Its collapse did not create a regulatory vacuum; it created a starting gun.
CFTC Chair Selig's position
The day after the Senate vote, CFTC Chair Michael Selig posted on X that the agency was "locked in and ready to ship" crypto market rules using its existing statutory authority. That language was not boilerplate. Selig had already telegraphed this direction at the CFTC's Innovation Advisory Committee conference on 20 August, telling attendees the agency was prepared to use existing powers to build a crypto asset market regime if the CLARITY Act stalled. He also disclosed that he had directed staff to explore rules that could allow existing registrants, and currently unregistered crypto exchanges, to operate as a new type of designated contract market specifically for leveraged or margined crypto trading.
SEC Chair Atkins in parallel
On the same day Selig posted, SEC Chair Paul Atkins stated the securities regulator would move forward "with or without legislation." Both agencies then acted simultaneously: the CFTC issued a no-action position covering certain passive software providers, and the SEC granted temporary exemptions for platforms facilitating onchain trading of tokenized securities. The OIRA filing is the next, more structural step in that sequence. For a detailed breakdown of how the CLARITY Act failure reshapes SEC and CFTC rulemaking, see our earlier analysis.
The Designated Contract Market Concept for Crypto
The most operationally significant detail in the public record so far is Chair Selig's disclosure about a potential new type of designated contract market (DCM) tailored to crypto assets. Under the Commodity Exchange Act, DCMs are regulated exchanges for futures and derivatives. Extending that framework to spot crypto markets, or creating a crypto-specific DCM category, would be a meaningful jurisdictional expansion.
What a crypto DCM could require of venues
Existing DCM core principles cover a wide range of obligations: real-time trade reporting, position limits, market surveillance, financial integrity of transactions, and rules against manipulation. If the CFTC creates an analogous regime for crypto asset markets, platforms offering leveraged or margined crypto trading would likely need to register, adopt surveillance programs, and meet capital or collateral standards. Unregistered exchanges currently serving US retail and institutional clients would face a binary choice: register or exit the US market.
Coinbase's read on the situation
Coinbase CEO Brian Armstrong posted on 15 September that the SEC and CFTC already had "the tools they need to create clear rules under existing authority" and that he expected them to begin working on this "in earnest." That is an industry signal that major US-domiciled exchanges are preparing for registration scenarios rather than waiting for Congress.
Accounting and Reporting Implications for Firms
For accounting practices and CFOs, a CFTC-led crypto market regime introduces obligations that run well beyond trading. The two broadest impact areas are transaction-level reporting and balance sheet classification.
Transaction reporting under a potential CFTC regime
Current CFTC swap reporting rules require near-real-time reporting to swap data repositories. A crypto asset transaction reporting framework modelled on that approach could impose similar latency and data field requirements on any counterparty above a de minimis threshold. For firms running treasury crypto positions or settling invoices in digital assets, this is a material change in record-keeping granularity. Your crypto bookkeeping software needs to be capable of capturing transaction-level data at the field depth regulators require, not just aggregate position values.
Balance sheet and fair value considerations
Regulatory classification matters for accounting treatment. If the CFTC formally classifies certain crypto assets as commodities subject to derivatives oversight, the accounting question shifts toward whether positions qualify as derivatives under ASC 815 or IFRS 9, whether hedge accounting is achievable, and how to measure fair value when a designated contract market provides an official reference price. Firms using digital asset accounting software that cannot tag assets by regulatory classification will struggle to produce compliant financials when that distinction starts mattering to auditors.
Audit trail and internal control readiness
Auditors examining crypto holdings already face challenges around existence and valuation. A CFTC registration regime would add a compliance layer: were all reportable transactions reported on time, were position limits respected, and was the firm dealing with a registered counterparty? That turns a purely accounting question into a controls question. Firms should begin mapping their current digital asset workflows against potential reporting obligations now, rather than waiting for an NPRM.
It is also worth cross-referencing the recent CFTC no-action position for passive software developers, which gives some early indication of where the CFTC draws the line on who is a regulated participant versus a tool provider.
Tax Considerations: Classification Still Unresolved
A CFTC-regulated crypto asset market does not automatically resolve the tax classification question, but it adds pressure to resolve it faster. The IRS treats crypto as property under Notice 2014-21, which has never been formally updated to reflect spot market infrastructure. If the CFTC begins classifying leveraged crypto products as commodity derivatives, the tax treatment of those instruments may converge toward Section 1256 contract rules, which carry a 60/40 long-term/short-term capital gain split and mark-to-market treatment at year end.
What firms should track now
No formal guidance has been issued yet. But firms holding leveraged crypto positions or writing options on crypto assets should flag this scenario to their tax advisers. If Congress eventually codifies a CFTC spot market regime, it is plausible that tax legislation follows. The House Ways and Means Committee has already been active on digital asset tax legislation in 2026, and a CFTC-led rulemaking could accelerate that track.
Practical Next Steps for Accounting Firms and CFOs
The OIRA filing is early-stage, but the direction is clear. Here is where to focus attention now.
Assess your current infrastructure
Map every digital asset position, custody arrangement, and trading relationship against what a DCM-style reporting regime might require. Identify gaps in your current crypto accounting software around trade-level data capture, counterparty classification, and regulatory tagging. Start that gap analysis now, before the ANPR comment period opens, so you can submit an informed response and make software decisions without deadline pressure.
Monitor the OIRA docket
OIRA publishes the status of regulatory reviews at reginfo.gov. The CFTC's crypto market action will move through "under review," "consistent with change," "returned," or "withdrawn" statuses. Each status update is a signal. Subscribe to alerts or assign a compliance team member to monitor the docket weekly.
Engage the comment process
When the ANPR publishes, the comment period is your firm's formal opportunity to shape the final rule. Accounting practices that represent multiple digital asset clients have standing to comment on record-keeping, reporting latency, and audit trail standards. Prepare now by documenting where current CFTC derivatives reporting rules create friction for crypto-specific workflows.
Revisit counterparty due diligence
If the final regime requires trading on registered venues, any client or treasury counterparty relationship with an unregistered platform becomes a compliance risk. Begin identifying which counterparties would need to register and which might exit the US market rather than comply. That assessment feeds directly into counterparty risk disclosures and going-concern considerations for auditors.
For a broader view of the US regulatory landscape that this filing sits within, see our crypto compliance and reporting pillar.
Source: Cointelegraph
Frequently Asked Questions
What is the OIRA prerule filing and why does it matter?
OIRA, the Office of Information and Regulatory Affairs, reviews significant federal regulatory actions before they proceed. A "prerule" designation means the CFTC has formally notified the White House it intends to develop rules covering crypto asset transactions and markets, but has not yet published a proposed rule. It is the first formal step in a process that typically leads to an Advance Notice of Proposed Rulemaking, then a Notice of Proposed Rulemaking, and finally a final rule.
Does this filing mean new CFTC crypto rules are imminent?
Not immediately. The prerule stage precedes a formal proposal by many months under a standard timeline. However, the political context, with both the CFTC Chair and the SEC Chair signalling urgency after the CLARITY Act's collapse, suggests the agency intends to move faster than a typical multi-year rulemaking cycle.
How could a CFTC crypto market regime affect our firm's audit obligations?
If the CFTC establishes a registration and reporting regime for crypto asset markets, auditors will need to verify not just the existence and valuation of digital asset holdings, but also compliance with trade reporting, position limit, and counterparty registration requirements. That expands the audit scope and places greater demands on firms' internal controls and record-keeping systems.
What is a designated contract market and could crypto exchanges be required to register as one?
A designated contract market is a CFTC-regulated exchange for futures and derivatives, subject to 23 core principles covering trade reporting, market surveillance, financial integrity, and anti-manipulation rules. Chair Selig indicated the CFTC is exploring a crypto-specific DCM category where leveraged or margined crypto trading could be offered under CFTC oversight. Exchanges that want to serve US clients in that space would likely need to register under that framework.
What should we do with our crypto accounting software before rules are finalised?
Start a gap analysis now. Identify whether your current digital asset accounting software can capture transaction-level data at the granularity CFTC swap reporting currently requires, tag assets by regulatory classification, and produce audit trails that support both financial statement audits and potential regulatory examinations. Waiting for a final rule before evaluating your systems leaves too little time to remediate gaps or change providers.