CFTC Chairman says proposed rules would restrict crypto leverage to federally regulated exchanges
Commodity Futures Trading Commission Chairman Michael Selig stated that proposed rules would allow only federally regulated crypto exchanges to offer leverage, keeping 100x offshore leverage banned in the United States.
Commodity Futures Trading Commission (CFTC) Chairman Michael Selig stated that only federally regulated crypto exchanges will be permitted to offer leverage under the agency's proposed rules, according to reports by Cointelegraph and CoinGape.[3][1][2]
Selig also addressed the high leverage ratios common outside the country, arguing that the 100x leverage provided by offshore platforms is no different from products the U.S. has historically banned. Under the agency's proposed framework, offering 100x leverage would remain prohibited domestically.[1][2][3]
If enacted, the proposed regulatory shifts could carry significant consequences for American traders who depend on leverage in their crypto market strategies.[2]
Key facts
- CFTC Chairman Michael Selig said proposed rules would allow only federally regulated crypto exchanges to offer leverage.
- Selig stated that 100x leverage offered on offshore platforms is no different from products the U.S. has historically banned.
- Under the CFTC's proposed rules, 100x leverage would remain prohibited in the United States.
- The proposed leverage rule changes could significantly affect American traders who trade using leverage.
Sources · 3 sources
- CO
CoinGape@CoinGapeMediaPost on X ·
🇺🇸 REGULATION: CFTC Chairman Michael Selig says only federally regulated crypto exchanges will be allowed to offer leverage under the agency’s proposed rules, adding that 100x leverage offered offshore would remain prohibited in the U.S. https://t.co/RZtbE1uleZ
Open source - TM
That Martini Guy ₿@MartiniGuyYTPost on X ·
🇺🇸 U.S. Crypto Leverage Rules Could Change CFTC Chairman Michael Selig says leverage would only be available through federally regulated crypto exchanges under the agency’s proposed rules. He also argues that 100x leverage offered by offshore platforms is no different from products the U.S. has historically banned. The changes could significantly impact American traders who rely on leverage.
Open source - CO
Cointelegraph@CointelegraphPost on X ·
🇺🇸 REGULATION: CFTC Chairman Michael Selig says only federally regulated crypto exchanges will be able to offer leverage under the agency's proposed rules, and the 100x seen offshore "will be no different" from what the US has always banned. https://t.co/HznNwqNIib
Open source