Leverage for US retail crypto traders may soon have a legal home.
📌 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.
🔍 Why it matters
• Large caps such as $XRP could trade with leverage on federally registered US venues.
• Chairman Michael Selig said the goal is to prevent frauds like FTX before they happen, not only prosecute them afterwards.
• Clear rules could bring trading activity that currently sits offshore back to US platforms.
👀 What to watch
• Leverage caps and the comment timeline, which the report did not spell out.
• The catch: Selig said the agency cannot require crypto to trade only on registered venues without Congress, so offshore leverage will not vanish.
💬 Would federal oversight make you more willing to use leverage, or less?
#CFTC
📌 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.
🔍 Why it matters
• Large caps such as $XRP could trade with leverage on federally registered US venues.
• Chairman Michael Selig said the goal is to prevent frauds like FTX before they happen, not only prosecute them afterwards.
• Clear rules could bring trading activity that currently sits offshore back to US platforms.
👀 What to watch
• Leverage caps and the comment timeline, which the report did not spell out.
• The catch: Selig said the agency cannot require crypto to trade only on registered venues without Congress, so offshore leverage will not vanish.
💬 Would federal oversight make you more willing to use leverage, or less?
#CFTC