A rulemaking proposal is pushing leveraged crypto trading one step further out of the gray zone and toward federal oversight. The CFTC (U.S. Commodity Futures Trading Commission) has announced the launch of a rulemaking process targeting leveraged and margined retail crypto trading, centered on two proposals: Regulation CTX and Regulation CAM.
According to what the CFTC has disclosed, this framework also includes establishing a new exchange category called "crypto asset market." This signals that regulators intend to create a classification for crypto asset trading venues that's separate from traditional futures exchanges, rather than simply applying existing rules to them.
For now, publicly available information is limited to the launch of the rulemaking process, the names of the two proposals, and the naming of the new exchange category. The CFTC has yet to release specific provisions, details on the scope of application, or a follow-up timeline.
