CFTC begins drafting first rules for leveraged crypto trades

On Oct. 5, 2026, the CFTC published an Advanced Notice of Proposed Rulemaking on retail crypto trades involving margin, leverage or financing. It sets out Regulation CTX for transactions and Regulation CAM for crypto asset markets and opens a 60-day comment period after Federal Register publication. Chair Michael Selig said federally registered exchanges "would be permitted to allow retail customers to trade on a margined, leveraged or financed basis," unlike state-licensed exchanges, and that such platforms "are squarely within the CFTC's regulatory jurisdiction." He said only Congress can mandate that all crypto asset exchanges register. Ordinary spot trading would generally remain outside the proposals. The step follows the Senate's 50-to-49 block of the CLARITY Act last month; the CFTC sent a rulemaking proposal to the White House within days. The SEC issued an innovation exemption in September and proposed Regulation Crypto Assets in August. The CLARITY fight centered on an ethics provision over presidents and senior officials profiting from crypto ventures, with every Democrat and four Republicans opposed. Left-rated headlines cast the ANPRM as registration rules for leveraged exchanges; Selig said registration would be optional. Rules remain subject to comment and review.