Circle · US Congress · CryptoSlate
CFTC makes its biggest move yet to bring offshore crypto trading back to the US
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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.
Key facts
- The CFTC is relying on Section 2(c)(2)(D) of the Commodity Exchange Act, which covers certain leveraged retail commodity transactions
- 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 Commodity Futures Trading Commission (CFTC) is offering US crypto exchanges a federal route to retail leverage as Congress remains stalled on market-structure legislation
- 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
Summary
01 CFTC proposed CTX and CAM rules that could give US crypto exchanges a federal path to offer retail leverage. 02 Access to margined trading could help domestic platforms compete with offshore exchanges that dominate leveraged crypto activity. 03 The trade-off is heavier oversight, including FCM intermediation, custody safeguards and potential changes to exchange business models. 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.