CFTC Chair Michael Selig declared "America is now the crypto capital of the world" on Monday, announcing guidance for non-custodial software developers, crypto asset taxonomy, and ending CFTC-SEC infighting through Project Crypto.
The Non-Custodial Developer Guidance
Selig directed staff to provide guidance on CFTC intermediary registration requirements for developers of non-custodial software systems like digital wallets and decentralized finance applications.
"For too long, there has been an open question as to whether software providers trigger the CFTC's registration requirements. We intend to address this question head-on," Selig said.
This guidance addresses a critical uncertainty that has plagued DeFi developers for years.
Clarifying whether building non-custodial software triggers registration removes a major barrier preventing developers from building in the U.S.
CFTC staff is also considering new rules clarifying when leveraged, margined, or financed retail commodity transactions in crypto may be offered off-exchange under an "actual delivery" exception.
The agency is examining classification of true crypto-perpetuals.
The Project Crypto Initiative
Selig partnered with SEC Chair Paul Atkins on Project Crypto to end "the days of CFTC-SEC infighting."
The initiative aims to deliver clarity through a joint framework including a clear crypto asset taxonomy.
The taxonomy will allow market participants to understand whether their products fall within CFTC jurisdiction, SEC jurisdiction, both, or neither.
"Harmonization is not a side-show; it is integral to opening up new avenues for entrepreneurs," Selig said.
Selig credited President Trump for pushing the U.S. marketplace to finally commit to a financial future with crypto playing a central role. He contrasted this with the prior administration's approach, which "weaponized" agencies against innovative industries.
The Dodd-Frank Cleanup
Selig criticized Dodd-Frank implementation as "an autoimmune response" that consolidated futures commission merchants from roughly 90 in 2007 to less than 50 today.
The result left farmers and small businesses unable to access hedging tools.
The CFTC is dismantling the Climate Risk Unit, eliminating the Climate-Related Market Risk Subcommittee, and formally disavowing the 2020 Climate Risk report with 53 recommendations.
"Climate-related financial risk is not a distinct regulatory category under the Commodity Exchange Act," Selig said.
The agency is also withdrawing the June 2, 2022 Request for Information on Climate-Related Financial Risk. "We remain focused on our core mission, not political pet projects."
The Prediction Markets Push
Selig announced guidance addressing how event contracts may be listed and traded consistent with CFTC's statutory framework.
The CFTC filed an amicus brief defending its exclusive jurisdiction over commodity derivatives against state challenges.
Prediction markets captured the scale of Trump's 2024 victory in ways pollsters either could not or refused to capture.
"It's my hope that, by marrying prediction markets with blockchains, we can see how decentralized trust and truth can act as a check on disinformation," Selig said.
