The U.S. Commodity Futures Trading Commission (CFTC) has proposed new rules to address how connected financial firms operate in the derivatives market.
The proposal, which focuses on connections among CFTC-regulated organizations, is meant to resolve possible conflicts of interest while permitting the development of new market structures, according to a statement released by the regulator on Thursday.
The CFTC is requesting public input on proposed modifications to a number of current regulations, including Commission Regulations 1.52 and 1.55 and Parts 37, 38, and 39 of its regulations. Particularly as these arrangements grow more prevalent, the suggested modifications concentrate on businesses that have several functions inside the financial system.
The CFTC said that it has observed an increase in connections between regulated firms, including futures commission merchants, designated contract markets, swap execution facilities, and derivatives clearing organizations. Additionally, these businesses now have stronger ties to other market players, such as market makers.
Regulators are focusing increasingly on how these interactions may impact fairness, competitiveness, and trust in financial markets as businesses assume additional functions within the same market structure.
Vertically integrated market structures are the main focus of the CFTC’s proposal. This implies that rather than concentrating on just one aspect of a financial service, a business or network of related businesses may control or offer other aspects of it.
According to the agency, it intends to develop regulations that assist in managing potential issues while eliminating needless limitations on companies developing new financial services and products.
.@CFTC Seeks Public Comment on Notice of Proposed Rulemaking Concerning Affiliations Among Certain CFTC-Regulated Entities: https://t.co/1Hm5wCkDDl
— CFTC (@CFTC) July 30, 2026
According to CFTC Chairman Michael S. Selig, the proposal is a component of the organization’s endeavor to encourage prudent expansion in the derivatives markets in the United States. “The CFTC is taking a significant step in our ongoing efforts to support responsible innovation in U.S. derivatives markets by laying out principles-based regulations for vertically integrated market structures,” Selig said.
The plan, he continued, will establish “purpose-fit rules of the road” that enhance market integrity without restricting innovative market structures or imposing onerous compliance costs on registered enterprises.
Regulators have been examining the application of current financial regulations to new digital goods, such as blockchain-based marketplaces and derivatives connected to cryptocurrencies.
The CFTC started a more comprehensive examination earlier this year to see if current rules still apply to the evolving financial environment. In order to determine whether the present definitions and regulations are still appropriate as markets continue to evolve, the agencies solicited public input.
The recommendation is made at a time when the US Senate is under increasing pressure to move forward with the Digital Asset Market CLARITY (CLARITY) Act. A more comprehensive plan to regulate the cryptocurrency market is still being worked on by lawmakers, but it is still stuck in the Senate.
The U.S. Scott Bessent, the Treasury Secretary, urged senators to forward the measure, stating that it had already undergone sufficient deliberation.
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