Pull to refresh
Logo
What Changed
Following Why Sign Up
CFTC proposes federal framework for leveraged crypto trading

CFTC proposes federal framework for leveraged crypto trading

Rule Changes

New 'crypto asset market' category would let exchanges opt into federal oversight instead of state-by-state licensing

October 13th, 2026: CFTC publishes crypto market rules notice in Federal Register

Overview

Updated Oct 26

The CFTC's proposed federal framework for crypto trading is in its public comment period. The advance notice, published in the Federal Register on October 13, sets no binding rules. Comments are due December 14, and the notice asks how to design a new category, 'crypto asset markets,' for exchanges that offer leveraged or margined trading to retail customers.

The effort follows the Senate's failure to advance the Clarity Act earlier this month. Under the draft, a retail customer offered leverage, margin or financing would trade on a CFTC-registered venue. That requirement ends once the customer takes actual delivery, meaning the asset moves to a wallet the customer controls within 28 days. Direct spot trading of bitcoin and ether stays outside CFTC registration.

Why it matters

Crypto exchanges offering leveraged trading could choose federal oversight over state-by-state licensing, bringing retail crypto under uniform national rules.

Questions about this story

Free account needed to ask — your question is kept and asked for you right after sign-up. Answers are public.

No questions yet — be the first to ask.

Key Indicators

Dec 14, 2026
Public comment deadline
The CFTC will accept comments on the published notice (docket 2026-20888) through December 14, 2026.
2
New rulemakings
Regulation CTX and Regulation CAM would establish the new framework.
28 days
Actual delivery window
Crypto delivered to a customer's own wallet within 28 days counts as actual delivery and ends the on-exchange requirement.
About 7x
Leverage cited by Selig
Selig called about 7 times the upper end reached so far in crypto perpetual futures markets. He said it is not a fixed cap for spot trading.

Voices

Curated perspectives — historical figures and your fellow readers.

Sign up to generate historical perspectives on this story.

Log in Sign Up

People Involved

Michael Selig
Michael Selig
Chairman, Commodity Futures Trading Commission
Leading the CFTC's crypto rulemaking
 Donald Trump
Donald Trump
President of the United States
Promised a crypto asset regulatory market structure

Organizations Involved

Commodity Futures Trading Commission
Commodity Futures Trading Commission
Federal regulator
Public comment open on proposed crypto market rules through December 14, 2026

The U.S. federal agency that regulates derivatives markets, including futures, options, and swaps.
U.S. Congress
U.S. Congress
Legislative body
Failed to pass the Clarity Act

The U.S. legislative branch, which considered but failed to pass the Clarity Act.

Timeline

2 events Latest: October 13th, 2026 · 4 weeks ago

  1. CFTC publishes crypto market rules notice in Federal Register

    Latest Regulatory Proposal

    The advance notice of proposed rulemaking appeared in the Federal Register under docket 2026-20888, opening the public comment period. Comments are due December 14, 2026.

  2. CFTC proposes Regulation CTX and Regulation CAM

    Regulatory Proposal

    The CFTC issued an advance notice of proposed rulemaking on a federal framework for crypto exchanges offering leveraged or margined trading to retail customers. The notice contains no binding rules; the 60-day comment period starts upon Federal Register publication.

Scenarios

1

CFTC finalizes crypto market rules

Likely Resolves by End of 2027

Discussed by: CFTC officials and industry observers

The 60-day public comment period closes in December 2026. The CFTC reviews feedback and publishes final Regulation CTX and Regulation CAM rules, establishing the crypto asset market category. Exchanges can then register under the new framework.

2

Congress passes crypto market structure legislation

Possible Resolves by Jan 20, 2027

Discussed by: CFTC Chairman Michael Selig, who expressed disappointment at the Clarity Act's failure

Congress revives the Clarity Act or similar legislation that would mandate all crypto exchanges register with the CFTC. Such a law would supersede or complement the agency's rulemaking, potentially expanding federal oversight to spot markets.

3

Exchanges stay with state licenses, federal option unused

Possible Resolves by End of 2027

Discussed by: Industry observers

Exchanges find the requirement that customer trades be intermediated through registered futures commission merchants too burdensome. They continue operating under state money-transmitter licenses, and the federal option sees little uptake.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

November 2022

FTX collapse (November 2022)

FTX, one of the world's largest crypto exchanges, collapsed in November 2022 after revelations that customer funds were diverted to cover losses at its trading arm. The exchange filed for bankruptcy, and founder Sam Bankman-Fried was later convicted of fraud.

Then

FTX filed for bankruptcy, leaving customers unable to access funds.

Now

The collapse intensified calls for crypto regulation and highlighted the need for proof-of-reserves requirements.

Why this matters now

Selig's Oct. 5 statement pointed to FTX as the kind of fraud the rules should prevent.

19th century to present

Dual state-federal banking charter system

The U.S. banking system has long allowed banks to choose between state and federal charters, with each type authorizing different permissible activities. This dual system gives banks flexibility in choosing their primary regulator.

Then

Banks can opt into federal oversight or remain under state regulation.

Now

The dual charter system has persisted for over a century.

Why this matters now

The CFTC's proposal explicitly mirrors this model, letting crypto exchanges choose between state money-transmitter licenses and federal registration as a crypto asset market.

Sources

(21)
+15
CFTC Wall Street Journal The Hill CoinDesk The Star The Block Financial News via LSE Quartz Bitcoin.com News Bytes Europe Finance Magnates Coin Insider Cointelegraph Federal Register Baker Botts WilmerHale Steptoe GOV.HOUSE TokenPost CFTC The Hill