CFTC Seeks Comment on First Crypto Rules for Leveraged Trading, Leaving Spot Markets Out
By Unchained
AI summary of the source article
The CFTC released an advance notice of proposed rulemaking for Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM). Targeting retail trades conducted on a margined, leveraged, or financed basis, the frameworks provide a federal registration option for crypto platforms as designated contract markets or as a narrower crypto asset market subcategory. Plain spot trading is excluded from the rules. Proposed measures include proof-of-reserves obligations for pooled omnibus accounts, mandatory intermediation by futures commission merchants, and listing reviews. The proposals follow the stalling of the Clarity Act in a Senate vote.
Why it matters
The proposed rules provide a dedicated federal pathway and tailored compliance requirements for crypto venues offering leveraged retail trades, operating within the CFTC's existing statutory authority.
Key facts
- The CFTC's proposed Regulation CTX and Regulation CAM apply to retail crypto trading done on a margined, leveraged, or financed basis, leaving spot markets out.
- Proposed rules include a 60-day public comment window, proof-of-reserves requirements for omnibus accounts, and mandatory intermediation by futures commission merchants.
- Moving crypto assets to a non-custodial wallet within 28 days would generally qualify as actual delivery, avoiding the exchange registration requirement.