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

ChainCatcher news, according to the Wall Street Journal, U.S. Commodity Futures Trading Commission (CFTC) Chairman Michael S. Selig announced on October 5 that the CFTC formally proposed the first batch of crypto market regulatory rules aimed at promoting innovation and protecting investors.

Previously, because Congress failed to pass relevant bills clarifying the federal legal status of crypto assets, the CFTC and SEC turned to leading the formulation of market structure rules based on existing statutory powers. During the previous administration, the two major regulatory agencies mainly targeted crypto exchanges, custodians and software developers through law enforcement, leading to a large number of crypto companies going overseas.

The introduction of the new regulations marks an important shift in U.S. federal encryption regulation from "enforcement instead of legislation" to "active rule-making."