CFTC Unveils New Crypto Trading Rules Amid Regulatory Gap
The Commodity Futures Trading Commission (CFTC) has proposed two new rules, Regulation CTX and Regulation CAM, to regulate leveraged and margined crypto trading. These proposals come after the Digital Asset Market Clarity Act failed to pass the Senate last month. CFTC Chairman Mike Selig announced the proposals at Fordham Law’s Blockchain Regulatory Symposium, emphasizing that the agency is acting “with or without legislation” from Congress.
Regulation CTX covers crypto trades that use borrowed money or margin, while Regulation CAM introduces a new type of exchange registration called a crypto asset market. Crypto platforms offering leveraged or margined trading could register under this new category, which is a narrower version of the designated contract market status held by exchanges like Coinbase and Crypto.com. The rules aim to provide a clear national standard and replace prior enforcement actions.
The CFTC still lacks authority over direct spot trading of crypto assets, leaving this area under individual state money transmission laws. However, the agency can still pursue cases of fraud and manipulation in these markets. The public comment period for both proposed rules is now open for 60 days.
Both the CFTC and the Securities and Exchange Commission (SEC) are currently operating with reduced staff, with several seats still open. President Donald Trump has not yet nominated anyone to fill the remaining seats at either agency. A White House official indicated that nominations are expected “in the near future.”