Holy crap, the SEC and CFTC just keep rolling out crypto-friendly policies: 3x Bitcoin and Ethereum products are approved, and the U.S. is starting to pave the way for a nationwide license for crypto exchanges 😲🚀🚀🚀
In just five days, U.S. regulators did three things that once seemed unimaginable.
On October 1, the SEC made its first move on crypto custody.
A new proposal would allow registered investment advisers and funds to custody crypto under specific conditions, and even leave room for self-custody and custody by state-chartered trust companies.
On October 2, the SEC officially approved a rule change for Cboe BZX’s listing rules, clearing the way for 3x long Bitcoin and 3x long Ethereum products.
These products primarily use CME futures to gain exposure and reset daily. That doesn’t mean they’ll deliver 3x the returns of holding BTC long term, but the signal is still pretty extraordinary:
U.S. regulators are now discussing whether retail investors can use 3x leverage to trade crypto.
On October 5, the CFTC proposed a dedicated federal framework for leveraged crypto trading by retail investors.
Trading platforms can pursue federal registration through the CAM pathway, subject to oversight covering proof of reserves, customer asset protection, anti-manipulation measures, market surveillance, and system security—and then legally offer leveraged, margin, and financing-based crypto trading.
CFTC Chair Michael Selig said the goal is to move from catching people after an FTX-style collapse to establishing rules in advance to prevent the next FTX.
After the CLARITY Act got held up, the SEC and CFTC have really been killing it. The Democrats are useless!
In just five days, U.S. regulators did three things that once seemed unimaginable.
On October 1, the SEC made its first move on crypto custody.
A new proposal would allow registered investment advisers and funds to custody crypto under specific conditions, and even leave room for self-custody and custody by state-chartered trust companies.
On October 2, the SEC officially approved a rule change for Cboe BZX’s listing rules, clearing the way for 3x long Bitcoin and 3x long Ethereum products.
These products primarily use CME futures to gain exposure and reset daily. That doesn’t mean they’ll deliver 3x the returns of holding BTC long term, but the signal is still pretty extraordinary:
U.S. regulators are now discussing whether retail investors can use 3x leverage to trade crypto.
On October 5, the CFTC proposed a dedicated federal framework for leveraged crypto trading by retail investors.
Trading platforms can pursue federal registration through the CAM pathway, subject to oversight covering proof of reserves, customer asset protection, anti-manipulation measures, market surveillance, and system security—and then legally offer leveraged, margin, and financing-based crypto trading.
CFTC Chair Michael Selig said the goal is to move from catching people after an FTX-style collapse to establishing rules in advance to prevent the next FTX.
After the CLARITY Act got held up, the SEC and CFTC have really been killing it. The Democrats are useless!