The U.S. Commodity Futures Trading Commission (CFTC), against the backdrop of stalled congressional legislation, released its first round of crypto market rules, proposing Regulation CTX and CAM to establish a federal registration regulatory framework; at the same time, the U.S. Department of the Treasury withdrew proposed monitoring rules targeting non-custodial wallets and mixing services. Both developments point to an adjustment in the U.S. crypto regulatory path. The CFTC rules are summarized as a shift in regulation from enforcement to a registration framework, with major implications for compliance pathways across the industry; Treasury's withdrawal of the proposed rules directly affects the compliance boundaries for non-custodial wallets, mixing services, and DeFi, and is seen as a major turn in U.S. crypto regulation.
CFTC Proposes Regulation CTX and CAM, Plans Federal Registration Regulatory Framework
Based on the disclosed materials, the Regulation CTX and CAM proposed by the CFTC are its first round of crypto market rules introduced against the backdrop of stalled congressional legislation. The core aim of the rules is to establish a federal registration regulatory framework so that relevant market participants can be brought into the regulatory system through registration, rather than mainly relying on ex-post enforcement to define compliance and violations. This change in approach is directly summarized as a shift in regulation from enforcement to a registration framework. For the crypto industry, this means the focus of discussions on compliance pathways may shift from responding to case-by-case enforcement to how to obtain and maintain compliant status under a federal registration framework.
Treasury Withdraws Non-Custodial Wallet and Mixing Monitoring Rules
The development related to the U.S. Department of the Treasury is equally critical. The previously proposed monitoring rules covered non-custodial wallets and mixing services. After the withdrawal, the compliance boundaries for these areas, as well as DeFi, have changed accordingly, and pressure from DeFi privacy regulation has eased somewhat. The materials note that this withdrawal directly affects the compliance boundaries for non-custodial wallets, mixing services, and DeFi, constituting a major turn in U.S. crypto regulation and drawing high industry attention. Compared with the CFTC's proactive construction of a registration framework, Treasury's retreat on monitoring rules forms another regulatory thread in the same period, moving in a different direction.
Common Background Behind the Two Threads
Observing the two developments together reveals a common policy backdrop: with congressional legislation stalled, regulators are advancing crypto regulatory arrangements through their own rulemaking authority. The CFTC is providing a compliance entry point for the crypto market through a registration-based approach, attempting to convert the previously fragmented, enforcement-dependent regulatory approach into a framework-based arrangement; Treasury, meanwhile, has withdrawn proposed rules on non-custodial wallet and mixing monitoring, reducing immediate regulatory pressure on DeFi and privacy-related businesses. The specific directions of the two are not entirely consistent, but both reflect increased activity at the rulemaking level and will change relevant entities' judgments about compliance boundaries.
Direct Implications for Different Market Participants
For trading platforms and crypto service providers, if the federal registration regulatory framework ultimately takes effect, compliance pathways may become more certain, and registration may become an important prerequisite for entering the U.S. market. The conditions, processes, and ongoing obligations required for registration will also become key areas of industry preparation. For DeFi protocols, non-custodial wallet service providers, and mixing tools, Treasury's withdrawal of the proposed monitoring rules reduces immediate compliance uncertainty, but the boundaries of related businesses still need further clarification. It should be noted that the above are all developments at the rulemaking level, and their scope of application, method of effectiveness, and final form remain to be confirmed.
Several Directions to Watch Going Forward
Directions to watch going forward include: the official text and scope of application of the CFTC's two rules, Regulation CTX and CAM, and whether they enter a public comment process, as well as whether congressional legislation will re-engage and change the pace of rule advancement; whether Treasury will propose alternative arrangements after withdrawing the non-custodial wallet and mixing monitoring rules; and how the compliance boundaries for non-custodial wallets, mixing services, and DeFi will be defined in practice. These developments will jointly determine the next shape of the U.S. crypto regulatory framework and the ultimate direction of industry participants' compliance pathways.