The Commodity Futures Trading Commission has proposed amendments to Part 4 of its rules for commodity pool operators and commodity trading advisers that would reduce overlapping registration requirements for some SEC-registered investment advisers and raise the small-pool exemption threshold to $800,000 from $400,000. The plan would create a new CPO exemption under proposed Regulation 4.13(a)(4) for qualifying SEC-registered advisers operating eligible commodity pools whose investors are limited to specified sophisticated categories, and a related amendment to Regulation 4.14 would extend CTA registration relief to advisers serving those pools. The proposal would not eliminate all oversight, as advisers would still need to comply with SEC requirements under the Investment Advisers Act, file exemption notices through the National Futures Association and make annual confirmations and updates. The CFTC said the changes are intended to cut duplicative compliance burdens without sacrificing market integrity. Chairman Michael S. Selig said the proposal would address overly burdensome and overlapping rules and support U.S. market competitiveness. The commission also said codifying the relief in regulation would replace reliance on staff no-action letters, including Letter 25-50 issued in December 2025 for certain SEC-registered advisers managing pools limited to Qualified Eligible Persons, and specified relief in Letter 26-06 once a final rule is adopted. For smaller operators, the agency would increase the gross capital contributions cap in the existing small-pool exemption to $800,000, citing inflation since the threshold was last updated in 2003. The 15-participant cap would remain unchanged. The proposal also ties into the CFTC’s earlier 2024 update to some Qualified Eligible Person portfolio thresholds, which doubled certain tests to $4 million in securities and other assets and $400,000 in margin and option premiums. The Part 4 rulemaking does not create a crypto-platform regime or alter the CFTC’s spot-market authority over digital assets, though crypto-focused private funds may still be affected if their trading makes them commodity pools. Written comments identified by RIN 3038-AF61 are due within 45 days after publication in the Federal Register.