The U.S. Commodity Futures Trading Commission has launched an advance notice of proposed rulemaking for a voluntary federal path for leveraged retail cryptocurrency trading, with Chair Michael Selig explicitly stating that the rules would not force all crypto assets to trade on CFTC venues. The agency is seeking public feedback on Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM), focusing on retail crypto transactions covered by Section 2(c)(2)(D) of the Commodity Exchange Act. Selig's explanation draws an unusually clear boundary, emphasizing that the rules offer an option for exchanges wanting federal market regulation, but actual delivery within 28 days and customer control are key factors determining whether a financed retail purchase falls under this regulatory framework. The Commodity Exchange Act contains exceptions for covered sales resulting in actual delivery within 28 days, with the CFTC's detailed interpretation requiring customers to secure possession and control of the entire purchased quantity, including financed portions, and be able to use it freely away from the execution venue by the deadline.
The Senate's procedural setback on September 15 received 49 votes in favor and 50 against, with one senator absent, leaving supporters 11 votes short of the required 60-vote threshold to open debate. As reported by crypto.news, the failed vote left a route for reconsideration because Republican Sen. Thom Tillis switched his vote to no and filed a motion to revisit the result. The House had previously passed its version of H.R. 3633 in July 2025 by 294–134, including support from 78 Democrats, though a Senate version containing material changes would still require agreement between the two chambers.
On October 5, the CFTC announced an advance notice of proposed rulemaking concerning Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM), focusing on leveraged, margined and financed retail cryptocurrency transactions. The agency is seeking public feedback before developing detailed requirements of its proposed framework. Under the approach described by current Chairman Michael Selig, eligible cryptocurrency businesses could seek federal oversight through a registered trading venue, with firms operating certain retail crypto transaction services applying for a new category of designated contract market. The proposal is intended to establish standards for trading platforms and provide a federal alternative to some state-level licensing arrangements, with Selig explicitly acknowledging that the agency lacks authority to impose a broader requirement without legislation and that the voluntary route is commercially useful only if it can support products customers want at viable cost.
Despite the legislative setback, Fairshake, crypto's largest election spending network, has announced support for 32 House incumbents after all 32 supported the bill. According to Associated Press, the group has pledged nearly $30 million against Ohio Democratic Senate candidate Sherrod Brown, with six candidates receiving $1 million each and the remaining 26 receiving undisclosed amounts. The spending strategy aims to defend existing House supporters and preserve a bipartisan coalition, though it cannot guarantee the Senate votes needed for passage. Fairshake reports it has won 53 of 57 races in which it engaged during this cycle, demonstrating its political influence despite the legislative challenges.
The failed Senate vote has created a procedural route for reconsideration through Tillis's motion to reconsider, though it does not guarantee the necessary support. As reported by crypto.news, the Senate Banking Committee minority staff argued that the proposal did not adequately address the president's financial interests in crypto and pointed to other gaps in its analysis. The November 3 midterm elections will determine the next Congress's composition and leadership, which could influence whether the bill receives another floor vote. Former acting chair Pham expects tokenized shares of publicly listed companies to become more widely available through major U.S. financial markets over the next two years, predicting that the New York Stock Exchange and Nasdaq could support real tokenized stocks with meaningful trading activity by approximately 2028. She distinguished genuine tokenized shares from synthetic tokens, emphasizing that genuine products should provide investors with appropriate shareholder rights including voting privileges and corporate governance participation.
