Key Takeaways
- Selig highlighted BTC, ETH, SOL, XLM, XTZ and XRP as digital commodities, referencing the existing SEC–CFTC taxonomy.
- The six coins are examples, not an exclusive list, and the remarks do not announce new classifications.
- The contemplated CTX and CAM frameworks target leveraged retail crypto trading, with safeguards covering customer funds, capital, anti-money laundering and proof of reserves.
Commodity Futures Trading Commission Chairman Michael Selig has highlighted Bitcoin, Ether, Solana, Stellar, Tezos and XRP as examples of digital commodities while outlining a potential federal framework for retail crypto trading.
The six assets, BTC, ETH, SOL, XLM, XTZ and XRP, appear in the SEC and CFTC’s existing crypto taxonomy, which Selig referenced in his Oct. 5 remarks at the Fordham Law Blockchain Regulatory Symposium.
His comments reinforce an established agency interpretation rather than announce six new classifications.
The remarks accompanied the CFTC’s opening of an advance rulemaking process for Regulation Crypto Asset Transactions, or CTX, and Regulation Crypto Asset Markets, or CAM. These frameworks remain under consideration and have not taken effect.
Which Six Cryptocurrencies Did Selig Identify?
Selig’s examples cover six prominent blockchain assets:
- Bitcoin (BTC)
- Ether (ETH)
- Solana (SOL)
- Stellar (XLM)
- Tezos (XTZ)
- XRP (XRP)
However, the broader taxonomy extends beyond this group. The agencies’ March interpretation also identifies assets including Cardano, Chainlink, Dogecoin, Avalanche and Litecoin as examples of digital commodities.
The six highlighted in Selig’s remarks therefore do not constitute an exclusive regulatory list.
The interpretation describes digital commodities as assets whose value derives from a functioning crypto system and supply-and-demand dynamics, rather than expected profits from someone else’s essential managerial efforts.
It also explains that having a regulated futures contract is not necessary for an asset to qualify, although the existence of those contracts helped explain the selection of examples.
For investors and trading platforms, the significance lies in a clearer statement of the agencies’ approach to assets beyond Bitcoin and Ether. It is an agency interpretation, rather than a new congressional statute assigning permanent classifications.
CTX and CAM Target Leveraged Retail Crypto Trading
The CFTC’s planned framework focuses on covered retail transactions involving margin, leverage or financing, distinguishing them from ordinary purchases paid for in full.
Selig said the approach would offer exchanges a federal regulatory pathway tailored to those activities. In a separate published commentary, he acknowledged that the agency cannot require every crypto exchange to register without congressional action.
Under the contemplated structure, CAM would become a specialized registration category within the designated contract market framework.
Covered transactions would generally involve futures commission merchants, or FCMs, with safeguards addressing capital, customer asset segregation, disclosures and anti-money-laundering compliance.
Selig also outlined a potential proof-of-reserves obligation for exchanges holding customer property in pooled accounts.
The procedural distinction matters: the CFTC has issued an advance notice seeking information to guide possible future rules.
Written comments are due within 60 days of publication in the Federal Register, meaning details could change before formal proposals or final regulations emerge.
Self-Custody and Software Developers Get Attention
Selig also outlined a proposed clarification of the existing “actual delivery” exception. Delivery to a customer’s external, non-custodial wallet within 28 days would generally satisfy that exception.
Separately, the agency is exploring a policy for developers who publish software without soliciting orders, controlling execution or holding customer assets.
That initiative falls outside the current CTX and CAM proposals.
Commodity treatment nevertheless does not remove every securities-law issue. The SEC’s announcement explains that a crypto asset that is not itself a security can still be involved in an investment contract subject to securities laws.
The transaction’s structure therefore remains relevant alongside the token’s classification.
The immediate development is greater specificity about the regulators’ direction. Enforceable new trading requirements still depend on the rulemaking process.
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The information provided in this article is for informational purposes only. It is not intended to be, nor should it be construed as, financial advice. We do not make any warranties regarding the completeness, reliability, or accuracy of this information. All investments involve risk, and past performance does not guarantee future results. We recommend consulting a financial advisor before making any investment decisions.
Giuseppe Ciccomascolo began his career as an investigative journalist in Italy, where he contributed to both local and national newspapers, focusing on various financial sectors.
Upon relocating to London, he worked as an analyst for Fitch's CapitalStructure and later as a Senior Reporter for Alliance News. In 2017, Giuseppe transitioned to covering cryptocurrency-related news, producing documentaries and articles on Bitcoin and other emerging digital currencies. He also played a pivotal role in establishing the academy for a cryptocurrency exchange website. Crypto remained his primary area of interest throughout his tenure as a writer for ThirdFloor.
