The CFTC chair just told US crypto traders: margin is coming.
On the Bankless podcast (Oct 19), Chair Mike Selig laid out two proposed frameworks. Regulation CTX would let American retail trade $BTC and $ETH with margin, leverage or financing on CFTC-regulated platforms — even pledging existing crypto as collateral. Leverage limits would be set by exchanges in consultation with the CFTC; today's US crypto derivatives venues run up to ~7x, which Selig called the market norm, not a ceiling. Regulation CAM would offer exchanges an optional federal license replacing the state-by-state money-transmitter patchwork, with segregated customer funds and conflict-of-interest rules.
The subtext: the CLARITY Act died 49-50 in September, so the CFTC is writing market structure itself. "We do have a ton of authority as an agency and we're going to use it."
The caveat: this is an advance notice, not law. Comments run into December, and Selig admits only Congress can force every exchange to register — a future commission could rewrite all of it.
If US platforms offered margin on BTC/ETH tomorrow, would you take it — or stay spot-only? NFA. DYOR.
#Bitcoin #CryptoNews #CFTC #MarginTrading
On the Bankless podcast (Oct 19), Chair Mike Selig laid out two proposed frameworks. Regulation CTX would let American retail trade $BTC and $ETH with margin, leverage or financing on CFTC-regulated platforms — even pledging existing crypto as collateral. Leverage limits would be set by exchanges in consultation with the CFTC; today's US crypto derivatives venues run up to ~7x, which Selig called the market norm, not a ceiling. Regulation CAM would offer exchanges an optional federal license replacing the state-by-state money-transmitter patchwork, with segregated customer funds and conflict-of-interest rules.
The subtext: the CLARITY Act died 49-50 in September, so the CFTC is writing market structure itself. "We do have a ton of authority as an agency and we're going to use it."
The caveat: this is an advance notice, not law. Comments run into December, and Selig admits only Congress can force every exchange to register — a future commission could rewrite all of it.
If US platforms offered margin on BTC/ETH tomorrow, would you take it — or stay spot-only? NFA. DYOR.
#Bitcoin #CryptoNews #CFTC #MarginTrading