CFTC Chairman Michael Selig said proposed federal rules could allow U.S. retail investors to trade cryptocurrencies using margin and leverage. According to NS3.AI, the proposals would permit leveraged trading on CFTC-regulated platforms and establish an optional federal registration framework for exchanges.

The rules would require customer fund segregation, separation of exchange functions and safeguards against conflicts of interest. Selig said the CFTC has sufficient authority to advance crypto regulations despite the Clarity Act's failure to pass Congress. The CFTC is coordinating with the SEC on crypto asset classification, with rules potentially advancing toward finalization in the coming months.