【CFTC writes its own rules for the first time—will leveraged trading be first in the crosshairs? ⚖️🔥】
Group chat: 🚀加入X先生粉丝群聊跟进监管动向
The path through Congress hit a dead end in September. Regulators aren’t waiting—they’re writing the rules themselves. On October 5, the CFTC unveiled its first crypto framework. It’s not a final version; it’s an initial request for public comment. CFTC Chair Selig is personally backing it. He says the goal is to keep the U.S. the crypto capital of the world. ⚖️
This framework doesn’t cover every kind of crypto trading. It targets only trading with borrowed money: retail trades involving leverage, margin, or financing. In other words, the kind where you place a bigger order than your funds would normally allow. Buying crypto directly with cash isn’t included. The line is drawn pretty clearly. 💰
The CFTC also wants to create a new type of license, called a “crypto asset market.” It would sit under designated contract markets and be issued specifically to platforms offering this kind of trading. That would give leveraged trading an official status. The requirements and conditions haven’t been set yet. 🏛️
The rules are based on an old provision of the law: Section 2(c)(2)(D) of the Commodity Exchange Act. Once published in the Federal Register, there will be a 60-day public comment period. For now, they’re just asking for feedback—the rules won’t take effect immediately. A formal proposal and a vote will come later. Even in the best-case scenario, that’s still several months away. ⏳
The CLARITY Act failed to pass its vote on the 15th. It got only 49 votes in the Senate, 11 short of the 60 needed. With the bill stalled, the two agencies have to act on their own. The chair says they need to stop another FTX-style collapse before it happens—not wait until disaster strikes and then chase companies one by one. This time, they’re trying a different approach. 🚨
Spot market oversight is still unresolved. The SEC’s jurisdiction over securities is still in place, too. The same platform could end up under the watch of both agencies. Compliance costs will probably rise. Clear rules are better than vague ones, but don’t expect everything to change overnight. 🧭
📌 In a nutshell: U.S. regulation is shifting from “punish them after the fact” to “set the rules in advance,” with leveraged trading first in the frame.
Plenty of people are using leverage these days. Do you think these rules will protect traders or just create more hassle? Share your thoughts in the comments.
#CFTC
Group chat: 🚀加入X先生粉丝群聊跟进监管动向
The path through Congress hit a dead end in September. Regulators aren’t waiting—they’re writing the rules themselves. On October 5, the CFTC unveiled its first crypto framework. It’s not a final version; it’s an initial request for public comment. CFTC Chair Selig is personally backing it. He says the goal is to keep the U.S. the crypto capital of the world. ⚖️
This framework doesn’t cover every kind of crypto trading. It targets only trading with borrowed money: retail trades involving leverage, margin, or financing. In other words, the kind where you place a bigger order than your funds would normally allow. Buying crypto directly with cash isn’t included. The line is drawn pretty clearly. 💰
The CFTC also wants to create a new type of license, called a “crypto asset market.” It would sit under designated contract markets and be issued specifically to platforms offering this kind of trading. That would give leveraged trading an official status. The requirements and conditions haven’t been set yet. 🏛️
The rules are based on an old provision of the law: Section 2(c)(2)(D) of the Commodity Exchange Act. Once published in the Federal Register, there will be a 60-day public comment period. For now, they’re just asking for feedback—the rules won’t take effect immediately. A formal proposal and a vote will come later. Even in the best-case scenario, that’s still several months away. ⏳
The CLARITY Act failed to pass its vote on the 15th. It got only 49 votes in the Senate, 11 short of the 60 needed. With the bill stalled, the two agencies have to act on their own. The chair says they need to stop another FTX-style collapse before it happens—not wait until disaster strikes and then chase companies one by one. This time, they’re trying a different approach. 🚨
Spot market oversight is still unresolved. The SEC’s jurisdiction over securities is still in place, too. The same platform could end up under the watch of both agencies. Compliance costs will probably rise. Clear rules are better than vague ones, but don’t expect everything to change overnight. 🧭
📌 In a nutshell: U.S. regulation is shifting from “punish them after the fact” to “set the rules in advance,” with leveraged trading first in the frame.
Plenty of people are using leverage these days. Do you think these rules will protect traders or just create more hassle? Share your thoughts in the comments.
#CFTC
