Bitcoin (BTC) rises above $80,000 on Friday, erasing losses from earlier in the week as the crypto market pushed a leg higher. The move comes as the Commodity Futures Trading Commission (CFTC) pushed for a crypto asset market regulations proposal, signaling regulators intent to establish oversight after Congress stalled comprehensive legislation.
CFTC pushes for crypto asset regulations amid CLARITY Act delay
The proposal, submitted Thursday to the Office of Information and Regulatory Affairs (OIRA), part of the Office of Management and Budget, is titled Regulation Crypto Asset Transactions and Regulation Crypto Asset Markets. Although the filing details are not yet available, OIRAs submissions website indicates it has been received and is pending regulatory approval.
The CFTC‘s latest proposal could align with the agency’s plan to establish a regime for the crypto market. It also comes just two days after Chairman Michael Selig said the agency was “ready to ship rules” after the Senate failed to advance crypto market structure legislation.
While the legislative path for comprehensive reform is uncertain amid upcoming midterm elections, agencies are filling the gap with incremental measures.
Regulators began seeking relief rules to cover Congress‘s shortfall, with the CFTC rolling out a no-action position for providers of passive software. The Commission’s Market Participants Division (MPD) stated that it will not recommend enforcement action against eligible providers or their relevant personnel for failing to register as an introducing broker or as an associated person of an introducing broker.
The crypto market responded positively to the news on Friday, with Bitcoin and other major assets registering gains. BTC rose above $81,000, gaining 5.5% in the past 24 hours. Ethereum (ETH), XRP and Solana (SOL) also gained 5%, 6.5% and 10%, respectively.
Other sectors, including decentralized finance (DeFi), privacy tokens and governance, rose 8.5%, 6% and 11%, respectively.
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The timing also aligns with the SECs temporary innovation exemption released Thursday, providing a five-year conditional path for certain platforms to offer onchain trading of tokenized stocks.