The initiative comes at a time of leadership uncertainty at the CFTC. President Trump’s nominee for CFTC chair, Brian Quintenz, is still awaiting Senate confirmation. Meanwhile, Pennsylvania lawmaker Ben Waxman introduced legislation to ban public officials from profiting off crypto while in office.
CFTC Begins New Crypto Sprint
The US Commodity Futures Trading Commission (CFTC) launched a second “crypto sprint,” which is aimed at expanding its engagement with market participants and implementing recommendations from the President’s Working Group on Digital Asset Markets. Acting Chair Caroline D. Pham announced that the agency is now seeking public feedback on how it should regulate spot crypto trading, particularly when it comes to leveraged, margined, or financed retail activity on CFTC-registered exchanges. Pham explained that stakeholder input will be crucial for the regulator to evaluate new approaches to oversight in order to fulfill the Trump administration’s crypto agenda.
Earlier this month, the CFTC unveiled its first crypto sprint initiative, which focused on exploring how spot crypto asset contracts could be traded on CFTC-registered futures exchanges. That announcement came shortly after the release of a 166-page White House report outlining a comprehensive strategy for digital asset markets.
White House report
The report produced 18 recommendations for the CFTC, with two being directly under its authority. The first urged the regulator to issue clearer guidance on when cryptocurrencies should be classified as commodities, how decentralized finance (DeFi) entities can comply with registration requirements, and what activities CFTC-regulated entities are permitted to undertake in the crypto space.
The second called on the agency to amend existing rules to better accommodate blockchain-based derivatives. The other 16 recommendations involved coordination with the Treasury Department and the Securities and Exchange Commission.
In its initial sprint announcement, the CFTC pledged to work closely with the SEC to build a rulemaking framework and use its existing powers to boost regulatory clarity for digital assets. However, leadership uncertainty raised questions about the agency’s ability to deliver.
President Donald Trump’s nominee for CFTC chair, Brian Quintenz, has yet to be confirmed after the White House delayed a Senate vote on his nomination in late July. Several crypto advocacy organizations have since pressed lawmakers to move forward with Quintenz’s confirmation, and warned that a permanent chair is vital for the CFTC to effectively manage its growing role in digital asset regulation.
For now, the agency is operating with just two commissioners, Pham and Kristin N. Johnson, who is expected to step down later this year. Former Chair Rostin Behnam resigned when the Trump administration took office in January, while commissioners Summer Mersinger and Christy Goldsmith Romero departed in May.
Bill Targets Crypto Use by Politicians
Meanwhile, Pennsylvania lawmaker Ben Waxman introduced new legislation that could prevent elected officials from profiting off cryptocurrency while serving in public office. The Democrat represents District 182 in the state’s House of Representatives, and unveiled HB1812 on Wednesday alongside eight Democratic co-sponsors.
Ben Waxman
He framed the measure as a direct response to what he described as “corruption” at the federal level, and specifically pointed to US President Donald Trump’s involvement in crypto ventures, including his own meme coin, Official Trump (TRUMP). Waxman accused the president of personally benefiting from these projects while simultaneously promoting policies that weaken oversight of the digital asset industry.
According to Waxman, no public official in Pennsylvania should be able to use their position to enrich themselves through cryptocurrency activities. His bill seeks to ban officials from launching, promoting, or trading tokens in which they have a financial interest.
If enacted, it will amend Title 65 of the Pennsylvania Consolidated Statutes to prohibit public officials and their immediate families from participating in transactions exceeding $1,000 in crypto while in office and for one year after leaving their positions. The legislation will also require divestment from any crypto holdings within 90 days of the bill becoming law.
The penalties outlined in the proposal range from fines up to $50,000 to prison sentences of as much as five years for more serious violations. The move comes amid broader Democratic efforts at both the state and federal levels to curb potential conflicts of interest tied to crypto. Similar bills have been floated in Congress that could ban federal officials, including the president, from sponsoring or endorsing digital assets.
The push for restrictions also follows a failed attempt in Pennsylvania to establish a state-level Bitcoin reserve. In November, Representative Mike Cabell introduced a bill that would have allowed the treasurer to allocate up to 10% of the state’s funds into Bitcoin, but the measure stalled in the House finance committee.
Source: https://coinpaper.com/10659/cftc-kicks-off-second-crypto-sprint-under-trump
