CFTC Seeks Public Input on New Rules for Leveraged Crypto Trading

The Commodity Futures Trading Commission (CFTC) has launched a consultation on potential new rules for leveraged crypto trading in the US. On 5 October, the agency published an Advanced Notice of Proposed Rulemaking (ANPRM) seeking public comment on Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM). These proposed regulations aim to establish a regulatory framework for retail crypto transactions involving leverage, margin, or financing under Section 2(c)(2)(D) of the Commodity Exchange Act.

The CFTC is considering two connected regulations rather than issuing final requirements. The proposals focus on retail crypto transactions and a possible federal framework for platforms offering such services. The notice begins consultation on potential requirements for the relevant retail market activity but does not establish operating rules for crypto platforms or trading firms.

Under the proposed approach, CAM would create a dedicated “crypto asset market” subcategory within designated contract market registration. This category is intended for platforms that offer leveraged, margined, or financed retail crypto transactions. The structure provides a tailored registration mechanism, separating the regulation of leveraged retail activity from a broader requirement that all crypto asset trading take place on federally registered venues.

Comments must be submitted within 60 days after the ANPRM is published in the Federal Register. The CFTC emphasized that the proposals would offer a federal regulatory pathway without compelling every crypto asset to trade on CFTC-registered platforms. The consultation concerns defined retail transactions and a potential pathway for platforms offering leverage, margin, or financing, not a universal venue mandate for crypto markets.