CFTC proposes first federal crypto rules for leveraged trading

Sources · 14 sources

1. LS

   Laura Shin@laurashinPost on X · 2d ago

   The CFTC is taking comment on its first crypto rules, Regulation CTX and Regulation CAM, aimed at margined, leveraged and financed retail crypto trading. Ordinary spot trading stays outside the proposals without action from Congress. https://t.co/zwj5vzNLD6

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2. WB

   Wu Blockchain@WuBlockchainPost on X · 2d ago

   CFTC Chair Cites BTC, ETH, SOL, XLM, XTZ and XRP as Examples of Digital Commodities CFTC Chair Michael Selig provided further details on the previously announced Regulation CTX and Regulation CAM framework. The proposed rules would generally require covered retail crypto transactions to be intermediated by futures commission merchants (FCMs) and impose requirements related to customer asset segregation, capital, anti-money laundering and proof of reserves. For onchain transactions, the CFTC is proposing to clarify that delivery of crypto assets to a user’s external, non-custodial wallet within 28 days would generally satisfy the “actual delivery” exception. Selig said the CFTC is also exploring a durable regulatory policy for developers who only publish software without soliciting or taking orders, controlling execution or holding customer assets. He also cited the CFTC and SEC’s joint crypto asset taxonomy, which lists BTC, ETH, SOL, XLM, XTZ and XRP as examples of “digital commodities.”

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3. BC

   Bitcoin.com News@BitcoinNewsPost on X · 2d ago

   🔥 Hot off the Wire: CFTC opens 60-day crypto rulemaking push as Chairman Michael Selig tells the industry to “build here” under American rules. https://t.co/IN40CaMOYv

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4. TB

   The BlockArticle · 2d ago

   CFTC proposes new federal framework for leveraged retail crypto trading The CFTC launched rulemaking on leveraged and margined retail crypto trading, proposing Regulation CTX and CAM and a new "crypto asset market" exchange.

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5. CR

   CryptoSlateArticle · 2d ago

   CFTC makes its biggest move yet to bring offshore crypto trading back to the US The Commodity Futures Trading Commission (CFTC) is offering US crypto exchanges a federal route to retail leverage as Congress remains stalled on market-structure legislation. On Oct. 5, the financial regulatory agency opened rulemaking for Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM), which would create a national framework for platforms offering retail customers margined, leveraged, or financed crypto trading. Participation would remain optional for ordinary spot exchanges because the agency acknowledges it cannot compel the broader crypto market onto CFTC-regulated venues without congressional action. The incentive is access to leveraged products that state money-transmitter licensing alone does not provide. The initiative gives the CFTC a way to use authority it says already exists under the Commodity Exchange Act while Congress has yet to enact comprehensive legislation governing crypto spot markets. CFTC turns leverage into its regulatory carrot The framework would effectively create three regulatory paths depending on what an exchange wants to offer US customers. Ordinary spot exchanges could remain primarily under state licensing regimes, supplemented by the CFTC’s existing anti-fraud and anti-manipulation authority. Platforms offering leveraged or financed retail crypto transactions could seek federal registration under the new framework, while venues offering futures, perpetuals and other derivatives would remain under the agency’s existing designated contract market regime. CAM would sit in that middle category. The structure would allow existing designated contract markets to offer CTXs under tailored rules while giving crypto platforms another route into federal supervision without requiring them to operate as conventional derivatives exchanges. The CFTC is relying on Section 2(c)(2)(D) of the Commodity Exchange Act, which covers certain leveraged retail commodity transactions. Hyperliquid Policy Center said the resulting structure could give market participants a clearer regulatory ladder, with state licensing covering ordinary spot activity, federal CFTC oversight applying where leverage is introduced, and the existing derivatives framework covering futures and perpetual contracts. The proposal could also narrow one of the biggest product gaps between US exchanges and offshore rivals. Leveraged trading and perpetual contracts have helped offshore venues attract active traders and generate substantial volumes. US platforms have generally operated with a narrower product menu because of regulatory constraints. That creates the central commercial bargain. Federal registration could give exchanges access to products that have historically strengthened the economics of offshore competitors, but accepting CFTC oversight could also force changes to the vertically integrated model through which many crypto venues combine exchange, brokerage and custody functions. Larry Florio, deputy general counsel at synthetic-dollar developer Ethena Labs , described retail leverage as the proposal’s central attraction, arguing that it could be enough to draw exchanges voluntarily into a single federal framework. Whether leverage generates enough additional volume and revenue to justify those constraints may determine how many major platforms enter the regime. FTX shapes the cost of opting in The regulatory bargain would extend well beyond permission to offer leverage. CFTC Chairman Michael Selig framed the initiative around lessons from FTX's bankruptcy , arguing that regulators should establish preventive safeguards rather than rely primarily on enforcement after customers have suffered losses. Selig said on Oct. 5 that “the lesson from FTX’s failure should have been obvious,” arguing that protecting customers from fraud should coexist with responsible crypto innovation. CAM operators would face core requirements already associated with designated contract markets, including rules governing financial integrity, surveillance, conflicts of interest and operational safeguards. The agency is also considering crypto-specific requirements. Exchanges could have to assess token concentration, distribution methods, vesting schedules, lockups, programmatic issuance and buybacks when determining whether an asset can be traded without being readily susceptible to manipulation. Platforms holding customer property in omnibus accounts could also face proof-of-reserves requirements, a safeguard Selig directly linked to risks exposed by FTX. Related Reading SEC and CFTC plans to write crypto rules without Congress – but they can’t make them permanent Customer CTX trades would meanwhile be intermediated through registered futures commission merchants, bringing customer accounts and property under requirements covering capital, disclosures and segregation. FCM involvement would also bring customer-facing activity within applicable Bank Secrecy Act obligations, including anti-money laundering controls, customer identification and suspicious-activity reporting. Those provisions raise the cost of opting into the federal framework beyond registration fees or compliance staffing. Exchanges could gain access to leverage while surrendering some of the structural flexibility that has allowed crypto platforms to keep trading, brokerage and custody under one roof. That trade-off will be central to whether the framework attracts the large US exchanges whose participation would give it meaningful scale. CFTC draws a boundary around onchain markets The commission is also beginning to define where decentralized markets and software developers fit within federal commodities law, although that effort sits partly outside the CTX and CAM initiative. The CTX proposal would clarify the Commodity Exchange Act’s “actual delivery” exception by treating transfers to a customer’s external non-custodial wallet within 28 days as generally satisfying the exemption from exchange-trading requirements for certain leveraged retail commodity transactions. Separately, Selig said the agency is considering how to treat developers who publish software without taking customer orders, controlling execution or holding customer assets. He said: “A person should not have to register as an introducing broker simply because that person shipped code.” The CFTC is consulting developers about where control resides in onchain venues and when software activity begins to resemble regulated financial intermediation. However, the more immediate question is economic for centralized exchanges . The Oct. 5 action is an advance notice of proposed rulemaking, and the agency is seeking public input before drafting detailed rules covering leverage, asset eligibility, custody, reserves and intermediary requirements. That leaves major elements of the framework unresolved, including leverage limits, capital standards and the extent to which FCM intermediation could reshape existing exchange business models. Agency rules also remain less durable than legislation, and a future commission could revise them. The CFTC is testing a relatively simple proposition: whether access to federally regulated retail leverage is valuable enough to persuade crypto exchanges to accept substantially deeper oversight. If major platforms decide that it is, the agency could begin pulling trading activity now concentrated on offshore venues into regulated US markets without waiting for Congress to settle the broader fight over crypto spot-market jurisdiction. The post CFTC makes its biggest move yet to bring offshore crypto trading back to the US appeared first on CryptoSlate .

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6. TB

   The Block@TheBlockCoPost on X · 3d ago

   NEW: CFTC Chairman Mike Selig says the agency is proposing rules that would create a federal regulatory pathway for crypto exchanges to offer retail customers leveraged and margined spot trading, without requiring congressional action. "Unlike the Clarity Act, these regulations wouldn’t require crypto assets to trade on CFTC-registered platforms," Selig wrote in the WSJ. "We don’t have the authority to impose such a requirement without congressional action. But the rules would establish a purpose-fit option for crypto-asset exchanges that wish to operate under a single federal regulatory scheme."

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7. CB

   Crypto Briefing@Crypto_BriefingPost on X · 2d ago

   ⚖️NEW: The CFTC publishes an advanced notice of proposed rulemaking to build a federal framework for retail crypto asset transactions under existing authority. The agency is seeking feedback on protections, industry standards and a new crypto market registration category. https://t.co/SPo2Lcpm1P

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8. UN

   UnchainedArticle · 2d ago

   CFTC Seeks Comment on First Crypto Rules for Leveraged Trading, Leaving Spot Markets Out The Commodity Futures Trading Commission (CFTC) on Monday published an advance notice of proposed rulemaking for two crypto rules, Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM) . The public has 60 days to comment once the notice appears in the Federal Register. The proposals apply to retail crypto trades done on a margined, leveraged or financed basis , which the Commodity Exchange Act already requires to run through CFTC-registered exchanges. They do not reach ordinary spot buying and selling of tokens such as bitcoin and ether. “Today’s action is a critical step in the CFTC’s ongoing efforts to ensure America remains the crypto capital of the world,” CFTC Chairman Michael Selig said. Get Unchained’s crypto news in your inbox with the free Unchained Daily newsletter . A Federal Option In prepared remarks for Fordham Law’s Blockchain Regulatory Symposium in New York, Selig sorted crypto venues into three tiers. Plain spot exchanges answer to the CFTC on fraud and manipulation but otherwise generally fall under state money transmission laws. Venues adding margined or leveraged retail trading must register with the agency, as must those offering perpetual futures and other derivatives. The proposals target that middle tier. Designated contract markets (DCMs) could offer these trades under tailored rules, while new entrants could register as a full DCM or as a narrower subcategory called a crypto asset market , or CAM. “I want to underscore that this is a federal option for crypto asset exchanges,” Selig said. Requirements under consideration include a proof-of-reserves obligation for exchanges that pool customer assets in omnibus accounts, mandatory intermediation by futures commission merchants , which brings in Bank Secrecy Act anti-money laundering rules, and listing reviews that weigh token concentration, lock-ups and vesting schedules. Moving a crypto asset to a user’s own non-custodial wallet within 28 days would generally count as “actual delivery,” keeping those trades off the exchange requirement. Selig also said the CFTC is exploring a policy, outside the scope of these proposals, for developers who publish software without taking orders or holding customer assets. “A person should not have to register as an introducing broker simply because that person shipped code,” he said. Working Without Congress The proposals come after the Clarity Act stalled in a Senate procedural vote on Sept. 15. Two days later, the CFTC sent the rulemaking to the White House for review. Unlike that bill, the CFTC’s rules would not force crypto trading onto CFTC-registered platforms, Selig wrote in a Wall Street Journal op-ed. “We don’t have the authority to impose such a requirement without congressional action,” he wrote. “We haven’t solved every problem, nor can agency action substitute indefinitely for a statutory framework passed by Congress, but we must do what we can,” Selig wrote. Related Listen: Crypto’s Clarity Act Collapses. Two Days Later, the SEC Introduces Its Innovation Exemption The post CFTC Seeks Comment on First Crypto Rules for Leveraged Trading, Leaving Spot Markets Out appeared first on Unchained .

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9. TW

   The Wolf Of All Streets@scottmelkerPost on X · 2d ago

   BREAKING: 🚨 The CFTC has published an Advanced Notice of Proposed Rulemaking seeking public comment on a comprehensive regulatory framework for crypto asset transactions and markets. The ANPRM covers section 2(c)(2)(D) of the Commodity Exchange Act and retail commodity transactions involving crypto assets (CTXs). At the same time, the Commission is soliciting input on codifying a new subcategory of designated contract market registration known as a "crypto asset market," purpose-built specifically for CTXs. Comments are due within 60 days of the ANPRM’s publication in the Federal Register. Chairman Selig described the move as a critical step to ensure America remains the crypto capital of the world, with a focus on clarity, consumer protections, and rules designed to prevent fraud rather than only prosecute after the fact. The CFTC is advancing a uniform national regime for crypto asset markets using its existing statutory authorities.

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10. BL

    BlockNews@blocknewsdotcomPost on X · 2d ago

    🚨 LATEST: CFTC Chair Michael Selig says Congress “failed to deliver” the CLARITY Act, but the agency will move forward with a crypto regulatory framework using its existing authority. “We’re not waiting.” https://t.co/5l0UZlZHz0

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11. JM

    Jacquelyn Melinek@jacqmelinekPost on X · 3d ago

    JUST IN: CFTC Chairman Michael Selig published a new op-ed sharing that the agency is moving ahead with a proposal for its own frameworks for crypto markets, despite the Clarity Act failing to advance. The CFTC is proposing two new rulemaking frameworks: 1) Regulation Crypto Asset Transactions (CTX) 2) Regulation Crypto Asset Markets (CAM) The big takeaway: Selig says CFTC-registered exchanges would have a federal path to offer trading in crypto assets under rules designed specifically for crypto, rather than forcing exchanges into the legacy securities frameworks. Those federally regulated venues could also allow retail customers to trade on a margined, leveraged or financed basis. This is something state-licensed crypto exchanges cannot currently offer under the framework, Selig explained. It’s also important to note, Selig isn’t saying every crypto asset must move onto a CFTC-registered platform since the agency doesn’t have that authority without Congress. His argument is essentially that the U.S. waited too long for legislation, so regulators are using the authority they already have to start filling the gaps and this is one of the first steps it’s taking to do that. “Today’s action is just the beginning. The CFTC is starting the process of addressing gaps in crypto-asset market structure and creating clear rules of the road for innovators and market participants,” Selig said. “We haven’t solved every problem, nor can agency action substitute indefinitely for a statutory framework passed by Congress, but we must do what we can.”

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12. BL

    BlockNews@blocknewsdotcomPost on X · 2d ago

    🚨 JUST IN: 🇺🇸 The CFTC lists $BTC, $ETH, $SOL, $XRP, $XLM and $XTZ as examples of “digital commodities.” 🔥 Under the CFTC/SEC taxonomy, digital commodities are generally not securities, potentially providing greater regulatory clarity around U.S. oversight and crypto listings. https://t.co/jG0yGMmDSE

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13. BS

    BSCN@BSCNewsPost on X · 2d ago

    CFTC Recognizes Stellar and XRP as Digital Commodities Under the @CFTC's market taxonomy, digital commodities include not only $BTC, $ETH, and $SOL but also $XLM, $XRP, and $XTZ. Within the combined regulatory system set by both the CFTC and the SEC, any asset defined as a digital commodity is legally considered a non-security. This designation eliminates previous enforcement-related legal uncertainty, placing spot markets and derivatives of these six digital assets under the sole jurisdiction of the commodities regulator.

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14. CB

    Coin Bureau@coinbureauPost on X · 2d ago

    JUST IN: CFTC lists BTC, ETH, SOL, XLM, XTZ and XRP as examples of “digital commodities.” Under the CFTC/SEC taxonomy, digital commodities are generally NOT securities. This could mean less SEC uncertainty, clearer oversight and an easier path for US crypto listings.

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15. CT

    Coin TelegraphArticle · 2d ago

    CFTC joins SEC in proposing crypto framework after failed CLARITY vote CFTC Chair Michael Selig claimed that the agency was using its “existing statutory authorities“ to address crypto regulation after Congress failed to advance a market structure bill.

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