CFTC Proposes Crypto Trading Rules as Bank Watchdog Pulls Back Its Own

The Commodity Futures Trading Commission (CFTC) proposed two rules on October 5 meant to bring crypto exchanges and trading activity under its supervision, joining the Securities and Exchange Commission (SEC) in addressing digital assets. The proposals do not yet cover simple, direct spot-market trading, leaving a gap in how cash crypto markets are policed. Separately, a US regulator withdrew its digital asset rules for banks on the same day, rolling back earlier guidance on how lenders handle crypto exposure. Together the two moves point toward lighter federal oversight of crypto at the banking level even as derivatives regulation tightens. What remains unresolved is who, if anyone, will regulate spot crypto trading directly. Until Congress or a regulator closes that gap, major US exchanges will continue to operate under a patchwork of state and federal rules rather than one clear framework.