#CFTC
16 articles tagged #CFTC — curated RWA tokenization coverage.
Tokenization Moves From Crypto Experiment To Mainstream Financial Infrastructure In 2026
The United States is transitioning tokenization from a speculative experiment into a core component of mainstream financial infrastructure by 2026. Regulators, including the SEC and CFTC, have established a new memorandum of understanding to harmonize oversight, product definitions, and enforcement across digital asset markets. A central regulatory principle dictates that tokenizing a security does not alter its legal nature, requiring that digital versions preserve the same underlying rights as traditional assets to qualify for equivalent capital treatment. Major institutions like the Depository Trust Company, Nasdaq, and the New York Stock Exchange are actively integrating these technologies into their operations. Banking guidance now permits the use of tokenized collateral, provided it is supported by rigorous legal analysis and enforceable rights. Furthermore, the SEC has allowed broker-dealers to utilize qualifying payment stablecoins for capital requirements, while the CFTC is integrating digital assets into derivatives margin frameworks. This shift signals that market participants can no longer rely on regulatory gaps, as the focus moves toward building automated, compliant, and legally robust financial systems.
CLARITY Act Gets Senate Cloture Filing Ahead of September Vote
Senate Majority Leader John Thune has filed cloture on the motion to proceed to the CLARITY Act, formally known as H.R. 3633, to initiate the Senate floor process for digital commodity market regulation. This procedural move preserves a pathway for the legislation to be considered immediately upon the Senate's return from its state work period, which concludes on September 11. The bill, which previously passed the House in July 2025, aims to establish a federal framework defining the regulatory jurisdictions of the SEC and the CFTC. Despite this progress, the legislation faces significant hurdles, including a 60-vote threshold required to invoke cloture and ongoing disputes regarding government ethics, illicit finance safeguards, and stablecoin reward structures. Negotiators must resolve these policy disagreements to secure the necessary bipartisan support before the narrow legislative window closes in early October. The filing is a critical development for the RWA and broader crypto market, as it signals a formal attempt to codify market structure rules that could provide legal clarity for tokenized assets and digital commodities. Failure to reach a consensus on these contentious issues could stall the bill, leaving the industry without a unified federal regulatory standard. Consequently, the upcoming September session serves as a decisive test for the industry's ability to navigate complex legislative negotiations.
Bernstein says Clarity Act failure could accelerate SEC, CFTC crypto rulemaking
Bernstein analysts suggest that the failure of the Clarity Act to pass this year may paradoxically accelerate crypto rulemaking by the SEC and CFTC. The firm anticipates that regulators will shift toward a 'Project Crypto' approach, utilizing existing enforcement powers to establish market standards in the absence of comprehensive legislative action. This shift is significant for the RWA market as it implies a transition from legislative uncertainty to a more defined, albeit enforcement-led, regulatory environment. By formalizing rules through agency action, the SEC and CFTC could provide the necessary legal framework for institutional participants to scale tokenized asset offerings. Such a development would likely impact how RWA protocols navigate compliance requirements across various blockchain networks. The transition toward agency-driven rulemaking highlights the ongoing tension between legislative gridlock and the urgent need for clear operational guidelines in the digital asset space. Ultimately, this regulatory pivot could either provide the clarity needed for institutional adoption or introduce further friction for decentralized finance projects.
SEC Chair: SEC Will Set Its Own Crypto Rules if Clarity Act Stalls
SEC Chair Paul Atkins has signaled that the agency is prepared to implement its own regulatory framework for digital assets if the Clarity Act fails to pass the U.S. Senate. While the bill successfully cleared the House with a 294-134 vote and passed the Senate Banking Committee 15-9, it has currently stalled without a floor vote. Atkins emphasizes that congressional legislation is preferable to agency rulemaking because statutes provide long-term stability that cannot be easily reversed by future administrations. To prepare for a potential legislative failure, the SEC has developed a 'Regulation Crypto' package, which is currently on the agency's 2026 agenda. This initiative includes proposed rules for token registration exemptions, custody standards, and a safe harbor for projects transitioning toward decentralization. The uncertainty surrounding the bill's passage creates significant regulatory risk for the RWA market, as the Clarity Act would shift jurisdiction over most digital commodities to the CFTC. Without this statutory clarity, the industry remains reliant on administrative guidance, such as the March joint guidance that classified 16 tokens as digital commodities. This ongoing regulatory ambiguity impacts how RWA protocols structure their operations and compliance frameworks.
Can the CLARITY Act secure a Senate vote before the August break?
The CLARITY Act is currently navigating a congested Senate legislative calendar, with its potential floor vote threatened by competing priorities like the Lindsey O. Graham Sanctioning Russia Act of 2026. Despite these procedural hurdles, the bill has successfully cleared the House and the Senate Banking Committee, signaling significant bipartisan momentum for a unified digital asset framework. The latest draft consolidates various proposals into a single text, aiming to delineate SEC and CFTC responsibilities while establishing clear disclosure and certification standards for token issuers. This legislative effort is critical for the RWA market as it seeks to provide a streamlined fundraising exemption and regulatory certainty for institutional investors and issuers. However, the bill faces opposition from figures like New York Attorney General Letitia James, who warns that federal preemption could undermine established state-level consumer protections. The outcome of this debate will determine the future of U.S. digital asset oversight and the operational environment for tokenized real-world assets. If passed, the 180-day implementation period would provide the long-awaited clarity necessary for large-scale institutional adoption of blockchain-based assets.
Inside the CME and CFTC’s battle over onchain perpetual futures
The CME Group has initiated a lawsuit against the Commodity Futures Trading Commission (CFTC) and its chairman, Mike Selig, challenging the regulator's decision to permit blockchain-based perpetual futures on platforms like Kalshi and Coinbase. CME argues that these perpetual products, which lack expiration dates, are mislabeled and should be classified as swaps, thereby subjecting them to different regulatory and margin requirements. This legal battle highlights a significant tension between a traditional market incumbent and a regulator attempting to foster a more open, on-chain derivatives landscape. The conflict intensified after the CFTC blocked CME’s own proposal for 24/7 crude oil futures, leading to accusations that the agency is failing to provide a level playing field. With the global perpetual futures market reaching $60 trillion in volume, the outcome of this case could fundamentally reshape U.S. financial policy regarding decentralized finance and on-chain assets. The situation is further complicated by the fact that Chairman Selig is currently the sole member of the commission, effectively bypassing the traditional multi-member consensus process. Industry analysts suggest that the legal distinction between futures and swaps will be central to the court's decision, potentially impacting how future on-chain financial products are structured and regulated.
SEC and CFTC Project Crypto Harmonization Explained and What Comes After the Token Taxonomy
The SEC and CFTC are increasingly collaborating to address the regulatory ambiguity surrounding digital assets, focusing on the classification of tokens as either securities or commodities. This initiative seeks to harmonize oversight frameworks to prevent jurisdictional overlap and provide clearer guidance for market participants. By exploring a formal token taxonomy, regulators aim to establish standardized definitions that dictate compliance requirements for issuers and trading platforms. This effort is critical for the RWA market because legal clarity is a prerequisite for institutional adoption and the large-scale tokenization of traditional financial instruments. Without a unified approach, the fragmented regulatory landscape creates significant friction for cross-border asset movement and investor protection. The project signifies a shift toward proactive governance, potentially reducing the litigation risks that have historically hindered the growth of blockchain-based financial products. Ultimately, the success of this harmonization will determine the speed at which traditional assets can be safely integrated into decentralized finance ecosystems.
Polymarket traders cut Clarity Act passage odds to record low as Senate delay drags on
Polymarket traders have slashed the probability of the Clarity Act becoming law by year-end to 32%, a significant decline from the 82% peak observed in February. This legislative stagnation stems from persistent Senate delays and a lack of bipartisan consensus regarding essential ethics provisions. Senator Ruben Gallego and other Democrats continue to withhold support, citing concerns over potential conflicts of interest for public officials holding digital assets. The Clarity Act is intended to establish a definitive regulatory framework by delineating the jurisdictional boundaries between the SEC and the CFTC. Industry leaders argue that this legislation is vital to replace current regulation-by-enforcement with a stable, predictable rulebook that encourages domestic investment. Despite the legislative uncertainty, the broader digital asset market shows resilience, with RWA perpetual volumes reaching a record $311 billion in June. The failure to advance this bill underscores the ongoing friction between crypto-native innovation and traditional legislative processes in the United States.
CFTC collateral rule change could boost tokenized MMF
The Commodity Futures Trading Commission (CFTC) has finalized a rule change allowing a broader range of money market funds (MMFs) to serve as initial margin for uncleared swaps. Previously, MMFs utilizing reverse repo, repo, or securities lending were excluded from collateral eligibility, despite these instruments being standard for government MMFs under SEC Rule 2a-7. By removing these restrictions, the CFTC acknowledges the low-risk nature of reverse repo transactions, which involve lending cash against government securities. This shift is significant for the RWA market because it directly facilitates the use of tokenized MMFs as collateral in the massive OTC derivatives sector. With US MMF participation in Treasury repo transactions reaching approximately $1.7 trillion as of October 2025, the potential for tokenized assets to capture this liquidity is substantial. The Commission notably declined to impose additional caps or clearing requirements on these repo activities, providing a clear regulatory path for adoption. This development marks a critical step in integrating tokenized financial products into the institutional margin ecosystem, though cleared margin eligibility remains a separate regulatory hurdle.
CLARITY Act Faces CFTC Vacancy Fight Before Senate Floor Vote
The CLARITY Act, a pivotal piece of legislation aimed at establishing a regulatory framework for digital assets, is currently stalled in the Senate due to a political dispute over staffing at the CFTC and SEC. The bill proposes dividing digital asset oversight between the SEC and the CFTC, with the latter gaining significant authority over spot crypto markets. Currently, the CFTC is operating with only Chair Michael Selig in place, leading Democrats to argue that a full commission is necessary to ensure the durability and legitimacy of future crypto regulations. The White House has countered claims of obstruction, stating that Senate Democrats have failed to provide recommended names for the vacant seats despite requests. This staffing impasse is critical for the RWA market because the CLARITY Act mandates that regulators establish clear rules for exchange registration, custody, and disclosures. If the CFTC remains understaffed, any resulting rulebook could face legal challenges, undermining the regulatory certainty that token issuers and institutional investors require. With the Senate approaching its August recess, the ability to pass the bill depends on resolving these procedural hurdles to secure necessary Democratic support. Ultimately, the outcome will determine whether the U.S. moves toward a structured digital asset environment or continues to rely on enforcement-driven policy.
Hyperliquid Policy Center, Phantom urge CFTC to stop treating onchain protocols like traditional brokers and exchanges
Hyperliquid and Phantom have submitted formal responses to a CFTC Request for Information regarding the classification of on-chain protocols. These entities argue that decentralized platforms should not be regulated under the same frameworks as traditional centralized brokers and exchanges. The core of their argument centers on the technical reality that on-chain protocols operate via autonomous smart contracts rather than human intermediaries. By urging regulators to distinguish between decentralized infrastructure and legacy financial institutions, these firms aim to prevent stifling innovation within the digital asset ecosystem. This regulatory dialogue is critical for the RWA market, as the legal status of on-chain trading venues directly impacts the feasibility of tokenized asset distribution. If regulators adopt a rigid approach, it could force RWA protocols to adopt burdensome compliance structures that negate the efficiency benefits of blockchain technology. Conversely, a nuanced regulatory stance could provide the legal clarity necessary for institutional adoption of decentralized finance platforms. Ultimately, the outcome of this consultation will shape the operational landscape for any RWA project seeking to leverage decentralized liquidity pools.
CFTC Chair Selig warns regulators will end up ‘writing all the rules’ for crypto if Clarity Act stalls
CFTC Chair Michael Selig has issued a stern warning that federal regulators will be forced to unilaterally establish the comprehensive rulebook for the cryptocurrency industry if Congress fails to pass the Clarity Act. The current legislative impasse leaves a vacuum that agencies like the CFTC and SEC are increasingly filling through enforcement actions rather than proactive policy frameworks. This regulatory uncertainty creates significant friction for RWA tokenization projects that require clear legal definitions to operate across jurisdictions. By relying on judicial precedents and administrative mandates, the government risks stifling innovation and driving capital toward more favorable regulatory environments. For the RWA market, the lack of a statutory foundation complicates the classification of tokenized assets, potentially hindering institutional adoption. Selig emphasizes that legislative inaction effectively cedes control to unelected regulators, which may result in rigid or misaligned standards for digital assets. Establishing a clear legal path through the Clarity Act is essential to provide the stability necessary for large-scale integration of traditional financial assets onto blockchain networks.
The Project Crypto Scheme
During his second term, President Donald Trump generated $1.4 billion from cryptocurrency ventures, a windfall facilitated by the administration's systematic dismantling of federal oversight. Through 'Project Crypto,' a joint initiative between the SEC and CFTC, the administration has dismissed numerous enforcement actions against major firms like Kraken, Coinbase, and Binance, often following significant campaign donations. SEC Chairman Paul Atkins and CFTC Chairman Mike Selig have effectively neutralized regulatory scrutiny by reclassifying crypto assets under a new 'token taxonomy' that excludes most digital products from securities laws. This framework categorizes governance tokens and meme coins as digital commodities or collectibles, shielding Trump’s own ventures, such as World Liberty Financial and the $Trump meme coin, from federal oversight. While these policies have enabled the Trump family to profit extensively, they have left retail investors vulnerable, as seen when the value of the $Trump coin collapsed to 3 percent of its peak. The proposed CLARITY Act aims to codify this deregulatory environment by shifting jurisdiction to the more lenient CFTC. This shift represents a significant departure from previous enforcement standards, effectively creating a regulatory vacuum that prioritizes political and personal financial interests over market integrity.
Senate Races Against August Deadline to Vote on Crypto CLARITY Act
Senator Cynthia Lummis is pushing for an urgent Senate floor vote on the CLARITY Act before the August 7 summer recess, warning that failure to act could delay the legislation until 2027. The bill aims to establish a clear regulatory framework by splitting oversight between the SEC for investment contracts and the CFTC for digital commodity spot markets. A critical component of the proposal mandates that crypto platforms maintain segregated client accounts to prevent the commingling of funds seen in past exchange collapses. The legislation also allocates $150 million to combat crypto fraud and expands Bank Secrecy Act compliance for digital asset firms. Currently, the bill faces a political impasse as Democratic senators, led by Elizabeth Warren, demand strict ethics stipulations prohibiting government officials from profiting from crypto ventures. This demand follows disclosures revealing $1.4 billion in crypto-related earnings by President Trump. For the RWA market, this legislation is significant because it provides the legal certainty required for institutional adoption of tokenized assets. Achieving this regulatory clarity would replace current ad-hoc enforcement with a systematic structure, potentially accelerating the integration of traditional financial assets onto blockchain infrastructure.
SEC makes digital assets strategic priority through 2030
The U.S. Securities and Exchange Commission has officially elevated digital assets to a strategic priority within its draft Strategic Plan for fiscal years 2026–2030. This roadmap explicitly calls for the development of a firm regulatory foundation to support tokenization, onchain financial infrastructure, and blockchain technology. By acknowledging that digital asset growth has outpaced current regulations, the agency aims to provide greater legal certainty for market participants involved in custody, trading, and staking. The plan emphasizes the potential for these technologies to revolutionize American financial infrastructure while maintaining a focus on investor protection and capital formation. Furthermore, the SEC intends to address longstanding jurisdictional ambiguities by clarifying the division of responsibilities between itself and the Commodity Futures Trading Commission. This shift represents a significant institutional pivot toward integrating compliant onchain markets into the broader financial system. For the RWA market, this formal recognition provides a clearer path for institutional adoption and the scaling of tokenized offerings under established oversight.
Ondo Finance prepares RWA perpetual contracts platform as CFTC greenlights first US perp listing
Ondo Finance is preparing to launch Ondo Perps, a platform enabling non-U.S. users to trade perpetual futures on U.S.-listed equities, ETFs, and commodities with up to 20x leverage. This initiative follows the CFTC’s May 29 approval of Kalshi’s bitcoin perpetual contract, which signals a potential shift in the regulatory landscape for perpetual derivatives. Ondo, which currently holds approximately 60% of the tokenized equity market with $3.5 billion in TVL, aims to differentiate its platform by allowing users to utilize tokenized securities as collateral. This unique collateral structure enables cross-collateralization between tokenized stocks, Treasuries, and other real-world assets within a unified blockchain framework. The launch marks a significant strategic move under new CEO Ian De Bode, who assumed leadership following the unexpected passing of founder Nathan Allman. By integrating tokenized assets directly into a perpetual trading environment, Ondo seeks to bridge the gap between traditional prime brokerage services and crypto-native exchanges. While the platform currently operates outside U.S. jurisdiction, the evolving regulatory guidance suggests a potential pathway for future expansion. The success of this product will be a critical test for the company as it navigates both a leadership transition and a complex, case-by-case regulatory environment for perpetual contracts.