CFTC Unveils New Rules for Crypto Market Trading
The US Commodity Futures Trading Commission (CFTC) has unveiled new guidelines for crypto market trading, marking a significant step in regulatory clarity for the industry. On October 5, CFTC Chairman Mike Selig announced the proposal following a confidential White House review, fulfilling a commitment made after the collapse of the CLARITY Act.
The guidelines introduce two key frameworks: Regulation Crypto Asset Transactions (Regulation CTX) and Regulation Crypto Asset Markets (Regulation CAM). Regulation CTX focuses on the derivatives and financing layer of the crypto industry, regulating retail crypto trading using borrowed funds, leverage, and margin. The CFTC will recognize crypto purchases sent to non-custodial wallets as “actual delivery” if completed within 28 days, exempting such transactions from heavy exchange regulation.
Regulation CAM targets market structure and platform registration, proposing new federal licenses for crypto exchanges under the Designated Contracts Management (DCM) system. These licenses would require strict operational protections, including proof-of-reserves audits and anti-money laundering safeguards. The licenses also allow exchanges to bypass state-by-state rules by adopting a single federal registration, enabling them to offer leveraged trading, which is prohibited at the state level.
While the proposal offers a positive regulatory development, industry lawyers caution that the guidelines lack permanence and could change with shifts in agency leadership or presidential administration. Stakeholders and the public will have a 60-day commentary period following the proposal’s publication in the Federal Register.