Leverage for US retail crypto traders may soon have a legal home.
đ What happened
Per The Block, the CFTC on Monday launched a rulemaking with two proposals, Regulation CTX and Regulation CAM. They create a new registered exchange type, the crypto asset market, which could offer leveraged and margined spot trading.
đ Why it matters
âą Large caps such as $XRP could trade with leverage on federally registered US venues.
âą Chairman Michael Selig said the goal is to prevent frauds like FTX before they happen, not only prosecute them afterwards.
âą Clear rules could bring trading activity that currently sits offshore back to US platforms.
đ What to watch
âą Leverage caps and the comment timeline, which the report did not spell out.
âą The catch: Selig said the agency cannot require crypto to trade only on registered venues without Congress, so offshore leverage will not vanish.
đŹ Would federal oversight make you more willing to use leverage, or less?
#CFTC
đ What happened
Per The Block, the CFTC on Monday launched a rulemaking with two proposals, Regulation CTX and Regulation CAM. They create a new registered exchange type, the crypto asset market, which could offer leveraged and margined spot trading.
đ Why it matters
âą Large caps such as $XRP could trade with leverage on federally registered US venues.
âą Chairman Michael Selig said the goal is to prevent frauds like FTX before they happen, not only prosecute them afterwards.
âą Clear rules could bring trading activity that currently sits offshore back to US platforms.
đ What to watch
âą Leverage caps and the comment timeline, which the report did not spell out.
âą The catch: Selig said the agency cannot require crypto to trade only on registered venues without Congress, so offshore leverage will not vanish.
đŹ Would federal oversight make you more willing to use leverage, or less?
#CFTC