1.  CFTC Proposes Federal Framework for Leveraged Retail Crypto Transactions and Markets

On October 5, the Commodity Futures Trading Commission (CFTC) published an advanced notice of proposed rulemaking (the Proposed Rules) in connection with its efforts to establish a regulatory framework for crypto asset transactions (Regulation CTX) and introducing a new registration category for crypto asset markets (Regulation CAM). Section 2(c)(2)(D) of the Commodity Exchange Act requires retail commodity transactions offered on a leveraged, margined, or financed basis to be conducted on a designated contract market (DCM). Regulation CTX sets out the CFTC’s preliminary reading of two key terms. The first is when a “covered offer” of leverage brings a transaction within the statute. The second is what counts as “actual delivery,” which would generally mean holding the private keys to the wallet where the asset sits. Under that reading, a fully paid position that a platform records only on its internal books would still be regulated unless actual delivery occurs.

Regulation CAM would create a new category of registered “crypto asset market” (CAM), with core principles adapted from the DCM framework to fit how spot crypto trading actually works. Retail leverage could be offered only through arrangements run by a futures commission merchant (FCM) or by a bank sponsored by an FCM, and each arrangement would be listed in the CAM’s rulebook. The Proposed Rules also outline modified FCM rules for custody and disclosure and modified derivatives clearing organization rules for clearing. Exchanges that want to stay under state oversight could do so, and the CFTC is considering a de minimis exemption from CAM registration. See the press release here and the proposed rules here.

2.  FinCEN Announces Withdrawal of Proposed Wallet Reporting Requirements

On October 5, the Financial Crimes Enforcement Network (FinCEN) announced its withdrawal of proposed rulemaking from December 23, 2020 (2020 NPRM) that proposed to require recordkeeping, verification, and reporting requirements for certain deposits, withdrawals, exchanges, and other payments or transfers of convertible virtual currency (CVC) or digital assets with legal tender status (LTDA) through or to a bank or money services business (MSB) that involve a covered wallet. Covered wallets included unhosted wallets and wallets held at foreign financial institutions not subject to the Bank Secrecy Act as determined by FinCEN. Reporting and “know-your-customer” requirements would have applied to transactions over $10,000 and recordkeeping obligations would have applied to transactions over $3,000. As stated in the withdrawal notice, FinCEN noted that the 2020 NPRM was withdrawn as part of the President’s Working Group on Digital Asset Markets under Executive Order 14178 and an effort to make digital asset regulation “fit-for-purpose.” See the related press release here and the withdrawal notice here.

3.  SEC Releases Proposed Rules To Expand Accredited Investor Status 

On September 30, the Securities and Exchange Commission (SEC) released proposed rules that seek to expand the credentials by which an investor may qualify as an accredited investor. The proposed qualifications for an individual are (i) passing a new accredited investor exam to be developed by FINRA (Accredited Investor Exam), (ii) being a U.S. certified public accountant in good standing, (iii) being a chartered financial analyst in good standing, (iv) being a certified financial planner in good standing, and (v) holding the Series 79 (investment banking) or the Series 86/87 (research analyst) license. The proposed Accredited Investor Exam would test topics including securities structures, investment risks, disclosure, financial statements, conflicts of interest, and corporate governance. See the press release here.

4.  CFTC Staff Issues No-Action Relief Allowing DCMs To Remove Expiration Dates for Existing Perpetual-Style Futures

On October 3, the CFTC’s Division of Market Oversight (Division) issued a conditional no-action letter that allows DCMs to turn their existing “perpetual-style” futures on broad-based security indices into true perpetual futures. The letter follows a run of regulatory steps on perpetuals. On May 29, the CFTC issued an order finding that perpetual futures on bitcoin and other qualifying digital commodities may be listed as futures contracts. A companion policy statement required perpetuals on other assets to go through Regulation 40.3 review and approval. On October 2, the CFTC approved broad-based security index perpetual futures contracts. Because the classification had been uncertain, DCMs had listed index futures that work like perpetuals, using a periodic funding rate mechanism, but carried long-dated expiration dates of up to 25 years. The Division stated that it will not recommend enforcement against any DCM that removes those expiration dates with immediate effect, despite the 10-business-day certification requirements of Regulations 40.6(a)(3) and 40.6(b)(1).

The relief comes with conditions aimed at protecting traders who already hold positions, since amending a contract with open interest can shift prices for reasons unrelated to market fundamentals. Before making the change, a DCM must (i) amend only contracts that reference broad-based security indices; (ii) ask participants with open positions for feedback on potential adverse impacts; (iii) give at least five calendar days’ notice and an opportunity to close out positions under the existing terms; (iv) provide appropriate risk disclosures; (v) change no material term other than the expiration date; (vi) file the amendments under Regulation 40.6(a) or 40.5; and (vii) notify the Division, identifying the contracts involved and certifying that it has complied. See the press release here and the Division’s letter here.

5.  ICBA Files Suit Against OCC Over Trust Company Charters

On October 2, the Independent Community Bankers of America (ICBA) filed a complaint against the Office of the Comptroller of the Currency (OCC) and Comptroller Jonathan V. Gould in the U.S. District Court for the District of Columbia challenging the OCC’s National Bank Chartering final rule (published on March 2, 2026), Interpretive Letter 1176 (issued January 2021) and the interpretation that the OCC is permitted under federal law to charter national trust banks that engage in non-fiduciary activities, and the OCC’s conditional approval of a national trust bank charter for a crypto company. The complaint also alleges that non-depository trust banks escape a significant portion of federal regulations while their charters override many state consumer protection laws. On policy, the ICBA asserts that crypto trust banks can compete with community banks while avoiding FDIC insurance, Bank Holding Company Act oversight, the Volcker Rule, and prompt corrective action. Additionally, the ICBA notes that the OCC had never before chartered a national bank that neither took deposits nor engaged in fiduciary activities. The ICBA further argues that the OCC can charter only three kinds of national banks: (i) deposit-taking banks, (ii) bankers’ banks, and (iii) trust banks that perform certain trust company fiduciary activities. See the ICBA’s press release here and a copy of the complaint here.