CFTC Proposes New Rules for Leveraged Retail Crypto Trading
The Commodity Futures Trading Commission (CFTC) unveiled a major regulatory initiative on October 5, 2026, introducing two new rules aimed at governing leveraged retail crypto trading. The agency published an advance notice of proposed rulemaking for Regulation CTX and Regulation CAM, which would establish the first dedicated federal framework for crypto exchanges. CFTC Chairman Michael Selig described the proposal as a "critical step" toward clear regulations for crypto markets, opening a 60-day public comment period expected to close around early December 2026.
The proposal outlines a three-tier structure for crypto exchanges, with Rung 2 exchanges, those offering leveraged or margined crypto trades, being the primary focus. Regulation CTX would require these exchanges to route trades through a registered futures commission merchant, ensuring customer protections like fund segregation. The CFTC also proposed redefining "actual delivery" to close loopholes used by some exchanges to avoid registration.
Regulation CAM introduces a new registration category called a Crypto Asset Market (CAM), tailored for exchanges offering leveraged retail trading. CAMs would need to comply with proof-of-reserves obligations and listing standards to prevent market manipulation. The proposal does not address ordinary spot trading, which remains under state money transmission laws.
The initiative follows Congress's failure to pass the CLARITY Act, which would have divided crypto market jurisdiction between the CFTC and SEC. Chairman Selig emphasized that the CFTC can still advance parts of that vision using existing authority. The proposed rules remain open for public comment, with industry groups expected to weigh in before any formal regulations are drafted.