The crypto world’s dream of 125x leverage was jolted awake by one sentence from the CFTC.
Selig made it clear: traditional derivatives margin models and risk controls will be applied directly to crypto—“we absolutely won’t allow a race to the bottom on leverage.”
Short-term traders piling into highly leveraged positions will feel the pain, as regulators tighten liquidation thresholds. For the long term, though, this is an entry ticket for institutions—the more the rules resemble Wall Street’s, the more willing big money will be to come in. Turning a casino into a disciplined force: painful at first, rewarding later.
$BTC $ETH #CFTC
Selig made it clear: traditional derivatives margin models and risk controls will be applied directly to crypto—“we absolutely won’t allow a race to the bottom on leverage.”
Short-term traders piling into highly leveraged positions will feel the pain, as regulators tighten liquidation thresholds. For the long term, though, this is an entry ticket for institutions—the more the rules resemble Wall Street’s, the more willing big money will be to come in. Turning a casino into a disciplined force: painful at first, rewarding later.
$BTC $ETH #CFTC