CFTC Chairman Selig: New rules will promote crypto innovation and protect investors, marking a major shift in U.S. federal crypto regulation.

On October 5, according to The Wall Street Journal, CFTC Chairman Michael S. Selig announced that the CFTC has formally proposed its first set of regulatory rules for the cryptocurrency market, aimed at fostering innovation and protecting investors. Previously, due to Congress's failure to pass legislation clarifying the federal legal status of crypto assets, the CFTC and SEC have taken the lead in developing market structure rules based on their existing statutory authority. During the previous administration, the two regulators primarily targeted crypto exchanges, custodians, and software developers through enforcement actions, leading many crypto companies to relocate overseas. The rollout of these new rules marks a significant shift in U.S. federal crypto regulation from "enforcement over legislation" to "proactive rule-making."