CFTC Opens Consultation on New US Rules for Leveraged Crypto Trading and Crypto Markets

On 5 October, the Commodity Futures Trading Commission published an Advanced Notice of Proposed Rulemaking seeking public comment on Regulation Crypto Asset Transactions (CTX) and Regulation Crypto Asset Markets (CAM). The consultation concerns a potential regulatory framework for retail crypto transactions under Section 2(c)(2)(D) of the Commodity Exchange Act, according to the CFTC. The agency is considering two connected proposed regulations rather than issuing final requirements, focused on retail crypto transactions involving leverage, margin or financing and a possible federal framework for the platforms offering them.

CTX and CAM consultation

CTX and CAM concern the statutory category of retail crypto transactions covered by Section 2(c)(2)(D) of the Commodity Exchange Act, the CFTC said.

The ANPRM seeks public views before the agency decides whether, and how, to propose rules.

The notice begins consultation on potential requirements for the relevant retail market activity. It does not itself establish operating rules for crypto platforms or trading firms.

Crypto asset market registration

Under the proposed approach, CAM would create a purpose-built “crypto asset market” subcategory within designated contract market registration. The category is intended for platforms that offer leveraged, margined or financed retail crypto transactions, the CFTC said.

That structure would provide a tailored registration mechanism rather than treating the proposal solely as a new trading-product rule. It also separates the question of regulating this leveraged retail activity from a broader requirement that all crypto asset trading take place on federally registered venues.

Comment window and scope

Comments must be submitted within 60 days after the ANPRM is published in the Federal Register, according to The Block.

The supplied information does not specify when the ANPRM will be published in the Federal Register, so the precise closing date is not stated here.

The CFTC emphasised 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.

Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.